Employee Bonus Protection Act

Bill: 114-hr-1981
Sponsor: full_name: Rep. Calvert, Ken [R-CA-42]
Introduced: 2015-04-23
Policy area: Labor and Employment
Subjects: Labor standards

Wages and earnings
Latest action: action_date: 2015-11-16
text: Referred to the Subcommittee on Workforce Protections.

Summaries:
action_date: 2015-04-23
action_desc: Introduced in House
text: <p><b>Employee Bonus Protection Act</b></p> <p>This bill amends the Fair Labor Standards Act of 1938 to exclude from the regular rate at which an employee is employed (and at which overtime compensation is calculated) any sums paid in recognition of services performed during a given period if the payments are made to reward an employee or group of employees for meeting or exceeding the productivity, quality, efficiency, or sales goals specified in writing in a gainsharing plan, incentive bonus plan, commission plan, or performance contingent bonus plan and made available to the employees.</p> <p>The amount of the payments made under the plan (and excluded from calculation of overtime compensation) must be:</p> <ul> <li>based upon a formula stated in the plan, and</li> <li>established and maintained in good faith for the purpose of distributing to employees additional remuneration over and above the wages and salaries that are not dependent upon the existence of the plan or payments made pursuant to it.</li> </ul>

tv_txt: I 114th CONGRESS 1st Session H. R. 1981 IN THE HOUSE OF REPRESENTATIVES April 23, 2015 Mr. Calvert introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To amend the Fair Labor Standards Act of 1938 to provide that an employee’s ‘regular rate’ for purposes of calculating overtime compensation will not be affected by certain additional payments.

1. Short title This Act may be cited as the Employee Bonus Protection Act . 2. Regular rate for overtime purposes Section 7(e) of the Fair Labor Standards Act of 1938 is amended— (1) by inserting before the semicolon at the end of paragraph (3) the following: ; or (d) the payments are made to reward an employee or group of employees for meeting or exceeding the productivity, quality, efficiency, or sales goals as specified in a gainsharing plan, incentive bonus plan, commission plan, or performance contingent bonus plan ; and (2) by adding at the end the following: A plan described in clause (d) of paragraph (3) shall be in writing and made available to employees, provided that the amount of the payments to be made under the plan be based upon a formula that is stated in the plan, and be established and maintained in good faith for the purpose of distributing to employees additional remuneration over and above the wages and salaries that are not dependent upon the existence of such plan or payments made pursuant to such plan. .