What are Unpaid Bonuses?

There are 2 different kinds of bonuses in California to look at:

  • Discretionary Bonus – these are bonuses that don’t have any pre-set criteria, and are usually given at random for loyalty or good work.
  • Non Discretionary Bonus – these are bonuses that have pre-set criteria that an employee has to meet in order to be eligible, and are generally tied to some sort of performance metric.

When you’re determining your regular rate of pay, non-discretionary bonuses should be included.  This is important when determining your overtime pay, as your bonuses will increase your regular rate of pay, and therefore your overtime pay.

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