H. R. 1981
IN THE HOUSE OF REPRESENTATIVES
April 23, 2015
Mr. Calvert introduced the following bill; which was referred to the Committee on Education and the Workforce
To amend the Fair Labor Standards Act of 1938 to provide that an employee’s ‘regular rate’ for purposes of calculating overtime compensation will not be affected by certain additional payments.
This Act may be cited as the
Employee Bonus Protection Act.
Regular rate for overtime purposes
Section 7(e) of the Fair Labor Standards Act of 1938 is amended—
by inserting before the semicolon at the end of paragraph (3) the following:
; or (d) the payments are made to reward an employee or group of employees for meeting or exceeding the productivity, quality, efficiency, or sales goals as specified in a gainsharing plan, incentive bonus plan, commission plan, or performance contingent bonus plan; and
by adding at the end the following:
A plan described in clause (d) of paragraph (3) shall be in writing and made available to employees, provided that the amount of the payments to be made under the plan be based upon a formula that is stated in the plan, and be established and maintained in good faith for the purpose of distributing to employees additional remuneration over and above the wages and salaries that are not dependent upon the existence of such plan or payments made pursuant to such plan.