29 C.F.R. § 778.210 Percentage of total earnings as bonus.
Title 29 - Labor
In some instances the contract or plan for the payment of a bonus may also provide for the simultaneous payment of overtime compensation due on the bonus. For example, a contract made prior to the performance of services may provide for the payment of additional compensation in the way of a bonus at the rate of 10 percent of the employee's straight-time earnings, and 10 percent of his overtime earnings. In such instances, of course, payments according to the contract will satisfy in full the overtime provisions of the Act and no recomputation will be required. This is not true, however, where this form of payment is used as a device to evade the overtime requirements of the Act rather than to provide actual overtime compensation, as described in §§778.502 and 778.503.
Title 29: Labor
PART 778—OVERTIME COMPENSATION
Subpart C—Payments That May Be Excluded From the “Regular Rate”
Bonuses
§ 778.210 Percentage of total earnings as bonus.
