The Look-Back Period for Non-Discretionary Bonuses

California’s overtime rules for non-exempt employees are known by virtually every employer in the state. Less known—but no less equally true—is that a non-discretionary bonus that a non-exempt employee receives must be factored into the employee’s “regular rate of pay” when determining overtime pay for a non-exempt employee. And this, in turn, requires employers to allocate a non-discretionary bonus over the time period in which the bonus was earned.