Last month, the California Supreme Court published Alvarado v. Dart Container Corp. of California, a decision that provides additional insight into overtime calculations for employees that receive bonuses.
In true California fashion, the court favored employees by requiring employers to include bonuses as part of base compensation for the purposes of calculating overtime wages. This new standard increases the overtime rates for employees who receive these bonuses and, best of all, the court found that this interpretation is retroactive.
As an employer, it is important to understand how to calculate overtime wages to comply with California labor laws and take affirmative steps to avoid litigation. Contact the attorneys at Chauvel & Glatt, LLP to set up a time to discuss the way your business calculates overtime.