Bonuses and the Regular Rate: How They Change Code TT

The regular rate is all pay for employment in the workweek divided by hours actually worked, with a short list of exclusions (29 CFR part 778). Attendance, production and safety bonuses promised in advance are nondiscretionary and are included; so are shift differentials and commissions.

Worked example

46 hours at $15 plus a $50 attendance bonus: $740 ÷ 46 = $16.09 regular rate, and ½ × $16.09 × 6 = $48.26 of qualified overtime — more than the $45.00 you'd get from the base rate alone.

Bonuses that cover several weeks

A quarterly or annual bonus has to be spread back over the workweeks it covers, and the extra half-time recomputed for those weeks. Halftally counts a bonus in the week it appears; put it in the weeks it was earned, or adjust those weeks separately.

Last reviewed 2026-10-28. General information, not tax advice. Your tax adviser can tell you what applies to you.