Businesses may exclude the following compensation categories from an employee’s regular rate of pay: Discretionary bonuses Perks including parking benefits, wellness programs, gym access, employee discounts, etc. Certain sign-on and longevity bonuses Paid time off including vacation, holiday and sick time pay Payments for unused paid leave Business expense reimbursement including cellphone plans, membership dues, certain travel expenses, etc. Contributions to benefit plans for accident, unemployment, legal services or other events that could cause future financial hardship or expense Gifts including office coffee, snacks, etc. Premium payments for work performed outside regular work hours Extra compensation paid through an agreement between employer and employee Income from grants or options