One of the more surprising changes in the new FLSA overtime exemption rules is a provision allowing certain bonuses, commissions, and incentive pay to count for up to 10% of the new increased minimum salary level. However, the rule provides that only “nondiscretionary” bonuses, incentives, and commissions can be counted. So what exactly does “nondiscretionary” mean?
Home > Federal Law Articles > FLSA > Holiday Pay, Gifts, Bonus > What Bonuses and Incentive Payments Count As “Discretionary” Under The New Exemption Rules?