FLSA Question: Invalidating a Belo Agreement?
Posted: 31 August 2009 06:30 PM   [ Ignore ]
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I ran into an interesting wage and hour question.  The client wants to know if paying per-case bonuses or quarterly bonuses based on work accomplished (non-discretionary) would violate an employee’s ‘Belo’ agreement.

If employees are covered under a ‘Belo’ agreement, 29 C.F.R. 778.408(d) states that “the payment of compensation, over and above the guaranteed amount…year-end bonuses and similar payments which are not regularly paid as part of the employee’s usual wages, will not invalidate a contract which otherwise qualifies under section 7(f).”

It also says in the regulation in subpart (c) that payment of regular bonuses should be included in the regular rate used in the Belo agreement.

Thus, if an employer pays employees under a Belo agreement a non-discretionary, quarterly, bonus, in addition to the rate in the agreement, do folks on here think that the Belo agreements may become invalidated?

Any help would be greatly appreciated.

Jonathan F. Cohen, Esq.
APRUZZESE, McDERMOTT,
  MASTRO & MURPHY,
P.C.
Somerset Hills Corporate Center
25 Independence Boulevard
P.O. Box 112
Liberty Corner, NJ 07938
Tele: (908) 580-1776
Fax: (908) 647-1492
email:  .(JavaScript must be enabled to view this email address)

[ Edited: 01 September 2009 09:09 AM by Jonathan F. Cohen ]
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