09/01/2026
A recent California Court of Appeal decision, Martinez v. Sierra Lifestar, Inc., offers an important reminder that certain bonuses paid to hourly employees may need to be included in the regular rate of pay when calculating overtime. While the Court did not determine whether the bonuses at issue were properly excluded, its decision highlights the importance of carefully evaluating incentive compensation programs.
In our latest article by partners Mimi Ahn and Joyce Choi, we examine Martinez and what employers should consider when reviewing bonus programs and payroll practices.
Read the full article: https://kahanafeld.com/2026/08/31/bonuses-to-non-exempt-employees-can-create-significant-wage-and-hour-exposure/
