Retroactive overtime (ROT) is an additional amount of money that is awarded when an employee has a combination of

overtime Overtime is the amount of time someone works beyond normal working hours. The term is also used for the pay received for this time. Normal hours may be determined in several ways: *by custom (what is considered healthy or reasonable by society) ...

and an additional amount of money, such as a commission or a

bonus Bonus commonly means: * Bonus, a Commonwealth term for a distribution of profits to a with-profits insurance policy * Bonus payment, an extra payment received as a reward for doing one's job well or as an incentive Bonus may also refer to: Plac ...

that is guaranteed based upon work requirements. Overtime is required to qualify for retroactive overtime. So, if a salesperson receives a commission, but does not receive overtime, then the employee does not qualify for retroactive overtime.

Computation

Retroactive overtime is computed by using the number of hours of overtime worked for the specified

payroll A payroll is the list of employees of some company that is entitled to receive payments as well as other work benefits and the amounts that each should receive. Along with the amounts that each employee should receive for time worked or tasks pe ...

period to look up the coefficient percentages from the coefficient table (Form WH-134).Coefficient Table for Computing Extra

Half-Time In several team sports, matches are played in two halves. Half-time (also written halftime or half time) is the name given to the interval between the two halves of the match. Typically, after half-time, teams swap ends of the field of play in or ...

for Overtime, Form WH-13

/ref> This coefficient percentage is then multiplied by the commission and/or bonus to determine the ROT amount that will be awarded to the employee in addition to the already existing overtime and commission. The additional amount on money beyond the overtime, the commission or bonus, must be a guaranteed payment to the employee based upon specified work criteria. Here are some examples of some bonuses that qualify and do not qualify.

Qualifying bonuses

If an employee is awarded a known amount of money for working a certain shift or for working a number of consecutive weeks, that additional amount of money that is paid beyond the regular base pay and overtime will qualify for retroactive overtime

if and only if In logic and related fields such as mathematics and philosophy, "if and only if" (shortened as "iff") is a biconditional logical connective between statements, where either both statements are true or both are false. The connective is b ...

there are also overtime hours paid during the same pay period of the qualifying bonus. You could also consider this to have an OT value of zero and add an additional look-up table value of all zeros for the percentages to use to determine the ROT amount.

Non-qualifying bonuses

If an employee is awarded a discretionary bonus that is not guaranteed based upon specific work criteria, this bonus does not qualify for retroactive overtime. A good example of this is a

Christmas Christmas is an annual festival commemorating the birth of Jesus Christ, observed primarily on December 25 as a religious and cultural celebration among billions of people around the world. A feast central to the Christian liturgical year ...

bonus that may be awarded to employees. This is not a guaranteed bonus that the employee will receive for meeting a specified goal but is rather a bonus that is awarded to the employee on the discretion of the company.

Notes and references

Code of Federal Regulations (CFR) Part 778 of Title 29

Coefficient Table for Computing Extra Half-Time for Overtime, Form WH-134

External links

Coefficient Table for Computing Extra Half-Time for Overtime, Form WH-134
Labor rights Labor relations Labor history Business law Employment compensation Working time {{labor-stub

Computation

Qualifying bonuses

Non-qualifying bonuses

See also

Notes and references

External links