Section 7(e) of the Act requires the inclusion in the regular rate of all remuneration
for employment except eight 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 §§ 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 §§ 778.502 and 778.503.
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