Rewarding Performance in Compensation Act

Rewarding Performance in Compensation Act - Amends the Fair Labor Standards Act of 1938 to provide that an employee's regular pay rate, for purposes of calculating overtime compensation, will not be affected by additional payments to reward an employee or group of employees for meeting or exceeding productivity, quality, efficiency, or sales goals under a gain sharing, incentive bonus, commission, or performance contingent bonus plan.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1602 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1602

   To amend the Fair Labor Standards Act of 1938 to provide that an 
   employee's ``regular rate'' for purposes of calculating overtime 
   compensation will not be affected by certain additional payments.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2001

Mr. Ballenger introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
   To amend the Fair Labor Standards Act of 1938 to provide that an 
   employee's ``regular rate'' for purposes of calculating overtime 
   compensation will not be affected by certain additional payments.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rewarding Performance in 
Compensation Act''.

SEC. 2. REGULAR RATE FOR OVERTIME PURPOSES.

    Section 7(e) of the Fair Labor Standards Act of 1938 is amended--
            (1) by inserting before the semicolon at the end of 
        paragraph (3) the following: ``; or (d) the payments are made 
        to reward an employee or group of employees for meeting or 
        exceeding the productivity, quality, efficiency, or sales goals 
        as specified in a gainsharing plan, incentive bonus plan, 
        commission plan, or performance contingent bonus plan''; and
            (2) by adding at the end the following:
``A plan described in clause (d) of paragraph (3) shall be in writing 
and made available to employees, provide that the amount of the 
payments to be made under the plan be based upon a formula that is 
stated in the plan, and be established and maintained in good faith for 
the purpose of distributing to employees additional remuneration over 
and above the wages and salaries that are not dependent upon the 
existence of such plan or payments made pursuant to such plan.''.
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