NATDA Magazine Sept/Oct 2017 NM_Sept2017WEB-ilovepdf-compressed | Page 42

Here’s another example. To at- tract manufacturing candidates, you give them a $2,000 bonus after 6 months. This would be a non-discre- tionary bonus, so it must factor into the regular hourly rate of pay. Let’s also say that this is a deferred bonus that will be paid out over a series of pay periods. A retention bonus was earned over 6 months of 26 weeks for a weekly equivalent of $76.92 ($2000/26 weeks). If the employee worked OT during the 26-week period, the increase in the regular rate is calculated by dividing $76.92 by the total hours worked during the overtime week. If the employee worked 10 hours of overtime in their 9th week, the employee would be due an addi- tional $7.70 of overtime. Wage and hour violations are the number one litigated employ- ment law topic. Additionally, the Department of Labor was given extra money as an initiative to crack down violations. They now target five industries: Manufacturing, Hospitality & Food Services, Healthcare & Social Assistance and Retail. If you are in one of them, you are at a higher risk of audit and having to pay fines if you are not compliant. Failure to follow these rules can result in fines and damages, including back pay for up to three years for unpaid wages and overtime owed but not paid, liquidated damages, attorney’s fees and court costs. In addition, wage and hour violations can result in personal liability to the owners and decision makers who violated the law. Lastly, most insurance policies do not pay for any of the damages associated with violating wage and hour law. Disclaimer: The information provided in this article is for informational purposes only and not for providing legal advice. Use of and access to this article do not create an attorney-client relationship be- tween Trailer Makers Insurance and the user or browser.