The end of the year often brings a bevy of holiday compensation: bonuses, paid days off, and higher rates of pay. However, it is critical for employers to keep the Fair Labor Standards Act in mind when doling out these benefits. Failing to do so could result in underpayment and liability exposure. Any employer with non-exempt employees – those that are eligible for minimum wage and overtime protection under the FLSA – has to carefully consider how holiday compensation is paid. Because, unless the holiday compensation falls into one of the FLSA’s tightly prescribed exceptions, it has to be included in calculating employees’ regular rate for overtime purposes. READ MORE