Commission & Bonus Left Out of Your Overtime Rate
Overtime calculated only on base hourly pay, leaving out commissions or non-discretionary bonuses that legally must count toward the "regular rate."
What This Looks Like
- Earns hourly pay plus monthly commission, but overtime is calculated only on the hourly rate.
- Receives a regular production bonus that overtime pay ignores entirely.
- Paid a non-discretionary quality bonus each pay period that isn't folded into the overtime calculation.
What Can Affect a Case Like This
What can affect a case like this includes how much commission or bonus pay was excluded from the regular rate over time, how many overtime hours were affected, how long the practice went on, and whether the bonus was "non-discretionary" (tied to a formula or target) rather than a true discretionary gift.
Common Questions About Unpaid Commissions & Bonuses Excluded From Overtime
What is the 'regular rate' used for overtime?
Overtime is generally owed at one and one-half times your regular rate of pay, and the regular rate usually includes more than your base hourly wage — such as non-discretionary bonuses, commissions, and certain shift differentials.
Which bonuses have to be included in overtime pay?
Bonuses that are promised in advance or tied to productivity, attendance, quality, or sales targets are typically non-discretionary and must be included. Truly discretionary gifts, like an unannounced holiday bonus, may be excluded.
How can I tell if my overtime rate was calculated wrong?
Compare the overtime rate on your pay stubs with your base rate. If you earned regular bonuses or commissions but your overtime was still exactly one and one-half times your base hourly rate, the calculation may have left something out.
State Rules Can Change the Picture
Federal law sets the baseline, but state law can add protections that matter for this kind of claim. States that can require daily overtime include:
See overtime laws for all 50 states →