[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR778.208]

[Page 418]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 778_OVERTIME COMPENSATION--Table of Contents
 
    Subpart C_Payments That May Be Excluded From the ``Regular Rate''
 
Sec. 778.208  Inclusion and exclusion of bonuses in computing the 
``regular rate.''

    Section 7(e) of the Act requires the inclusion in the regular rate 
of all remuneration for employment except seven specified types of 
payments. Among these excludable payments are discretionary bonuses, 
gifts and payments in the nature of gifts on special occasions, 
contributions by the employer to certain welfare plans and payments made 
by the employer pursuant to certain profit-sharing, thrift and savings 
plans. These are discussed in Sec. Sec. 778.211 through 778.214. 
Bonuses which do not qualify for exclusion from the regular rate as one 
of these types must be totaled in with other earnings to determine the 
regular rate on which overtime pay must be based. Bonus payments are 
payments made in addition to the regular earnings of an employee. For a 
discussion on the bonus form as an evasive bookkeeping device, see 
Sec. Sec. 778.502 and 778.503.