What is the key difference between Discretionary and Non-Discretionary bonuses for FLSA purposes?
Answer
Discretionary bonuses are not tied to specific production goals, while Non-Discretionary ones are performance-based or pre-arranged
Discretionary bonuses are unplanned rewards, while Non-Discretionary bonuses are tied to production, quality metrics, or pre-arranged agreements, making the latter mandatory for factoring into the regular rate of pay for overtime.
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