Employee Bonus Protection Act

I 116TH CONGRESS 1ST SESSION H. R. 488 To amend the Fair Labor Standards Act of 1938 to provide that an employ- ee’s ‘‘regular rate’’ for purposes of calculating overtime compensation will not be affected by certain additional payments. IN THE HOUSE OF REPRESENTATIVES JANUARY 11, 2019 Mr. CALVERT introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Fair Labor Standards Act of 1938 to provide that an employee’s ‘‘regular rate’’ for purposes of calcu- lating overtime compensation will not be affected by cer- tain additional payments. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Employee Bonus Pro- 4 tection Act’’. 5 SEC. 2. REGULAR RATE FOR OVERTIME PURPOSES. 6 Section 7(e) of the Fair Labor Standards Act of 1938 7 is amended— 8 VerDate Sep 11 2014 21:02 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H488.IH H488 pbinns on DSK79D2C42PROD with BILLS 2 •HR 488 IH (1) by inserting before the semicolon at the end 1 of paragraph (3) the following: ‘‘; or (d) the pay- 2 ments are made to reward an employee or group of 3 employees for meeting or exceeding the productivity, 4 quality, efficiency, or sales goals as specified in a 5 gainsharing plan, incentive bonus plan, commission 6 plan, or performance contingent bonus plan’’; and 7 (2) by adding at the end the following: 8 ‘‘A plan described in clause (d) of paragraph (3) shall 9 be in writing and made available to employees, provided 10 that the amount of the payments to be made under the 11 plan be based upon a formula that is stated in the plan, 12 and be established and maintained in good faith for the 13 purpose of distributing to employees additional remunera- 14 tion over and above the wages and salaries that are not 15 dependent upon the existence of such plan or payments 16 made pursuant to such plan.’’. 17 Æ VerDate Sep 11 2014 21:02 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H488.IH H488 pbinns on DSK79D2C42PROD with BILLS