Employee Bonus Protection Act

HR 741, the Employee Bonus Protection Act, amends the Fair Labor Standards Act to clarify that certain performance-based bonuses (like those tied to productivity, sales, or quality goals) do not count toward overtime pay calculations. It directly affects employees receiving these bonuses and their employers who administer such plans. The bill requires these bonus plans to be in writing, with a clear formula stated in the plan, and maintained in good faith to distribute extra pay beyond regular wages. This change ensures employers cannot reduce overtime pay obligations by structuring bonuses as part of base compensation.