Public works wants a monthly attendance bonus for hourly crews, and counsel flags that a promised bonus can enter the FLSA regular rate. What should the CHRO do?
Select an answer to reveal the explanation.
Short Explanation
A promised attendance bonus is overtime bait if payroll pretends it does not exist. FLSA cares what the city actually pays, not what the memo nicknames it. Build the bonus so the regular rate is honest, then check whether people even show up more.
Full Explanation
Incentive design is a compensation-strategy problem that includes FLSA regular-rate treatment and a behavior test. Nondiscretionary attendance bonuses generally must be included in the regular rate for overtime. Labeling a promised bonus discretionary or paying it in gift cards does not remove the obligation and can create willful-violation risk. SPHR-level design documents the calculation, funds the overtime effect, and measures whether attendance actually improves.