Ace the Certified Payroll Pro Test 2025 – Payroll Masters, Your Time to Shine!

For overtime calculation, non-discretionary bonuses must be included in the calculation because they are considered part of the employee's regular rate of pay. The Fair Labor Standards Act (FLSA) requires that the regular rate of pay is determined by including all forms of compensation that are not discretionary bonuses. Discretionary bonuses, such as a surprise bonus for good performance, do not need to be included as they are not guaranteed and depend on employer discretion. However, non-discretionary bonuses, which are typically tied to performance or production (like attendance bonuses or production bonuses), must be factored into the regular rate to ensure that overtime pay is computed correctly. This ensures that employees receive fair compensation for their overtime hours worked.

The other options present inaccuracies regarding overtime calculation requirements. For instance, not all bonuses are excluded; it depends on whether they are discretionary or non-discretionary. Additionally, both hourly and salaried employees may be entitled to overtime, and the request for overtime pay is not a requirement; employees are entitled to it based on hours worked beyond the standard workweek.