You know the Fair Labor Standards Act (FLSA). It’s that 1938 law that says employers have to pay minimum wage and overtime. Oh, if only it were that simple.
Despite being nearly a century old, the FLSA continues to trip up employers in often costly ways. Many of the most common issues arise not from intentional misconduct, but reflect more of the old adage that no good deed goes unpunished — or result from an employer simply not knowing any better.
Although there are many examples, below are six recurring mistakes we continue to see, along with practical reminders for avoiding them.
1. Failing to Include Non-Discretionary Bonuses in the Regular Rate
One of the most frequent errors involves the calculation of the “regular rate of pay” for overtime purposes for, of course, non-exempt employees. For example, another potential collective action lawsuit under the FLSA was filed this week against a Pennsylvania employer because it allegedly did not include non-discretionary bonuses in the… Read the complete article here...
© 2026 Bradley Arant Boult Cummings LLP
