How does FLSA 778.210 percentage-of-total bonus pay work?

If a contract or plan pays additional compensation as a bonus at the same fixed percent of the employee's straight-time earnings and of overtime earnings, payments under that plan satisfy the FLSA overtime provisions for the bonus — the bonus already includes overtime due on it, so no 778.209 regular-rate recomputation is required.

Classic $20 × five 10h + 10% of total earnings?

Base earnings $1,100 (straight $1,000 + half-time $100) + 10% bonus $110 = $1,210. Ordinary /overtime/ is $1,100. Treating the same $110 as a flat nondiscretionary under 778.209 recomputes RR and totals $1,221. California Alvarado on the same $110 totals $1,251.25.

How is 778.210 different from 778.209 and Alvarado?

778.209 adds a flat nondiscretionary bonus into the regular rate and pays extra half-time on the bonus-inflated RR. 778.210 applies the same percent to ST and OT earnings so the bonus already carries its overtime — no recomputation. Alvarado divides a flat-sum bonus by non-OT hours and pays California daily premiums on that bonus RR.

What if the percentage form is used to evade overtime?

778.210 and 778.503 say that form does not satisfy the Act when used as a device to evade overtime. Treat the payment as ordinary nondiscretionary under 778.209 and recompute the regular rate.

Five 8h + 10% with no overtime week?

Base $800 + 10% = $880 versus /overtime/ $800. There is no overtime premium inside the base, but the percentage still applies to total earnings.

FLSA 778.210 Percentage-of-Total Bonus — No RR Recomputation

FLSA 778.210 percentage of total earnings as bonus

29 CFR § 778.210: when a contract or plan pays the same fixed percent of straight-time earnings and of overtime earnings, the bonus simultaneously pays overtime due on the bonus — no regular-rate recomputation under 778.209. Classic $20 × five 10h + 10% → $1,210 vs /overtime/ $1,100 vs RR flat $110 $1,221 vs Alvarado $1,251.25.

How 778.210 pays

Percentage of total earnings. Section 778.210 recognizes plans that pay a bonus as a fixed percent of the employee’s straight-time earnings and the same percent of overtime earnings. As an arithmetic fact, that bonus already includes the overtime premium due on the bonus amount, so the employer does not recompute the regular rate under 778.209 after the bonus is paid.

Not a flat nondiscretionary. A flat $110 bonus on the same 50-hour week is added to remuneration, divided by hours, and triggers extra half-time on the higher RR — classic $1,221 on /flsa-regular-rate/. The 778.210 10% path pays $1,210 with no recomputation. California Alvarado divides a flat-sum bonus by non-OT hours and pays state daily premiums on that bonus RR ($1,251.25 on the same $110).

Evasion devices. 778.210 and 778.503 refuse the percentage form when it is used to evade overtime rather than to provide actual overtime compensation on the bonus. Check the evasion toggle to force the 778.209 recomputation path.

Classic · $20 · five 10h · 10% of total → $1,210 (vs /overtime/ $1,100 · RR flat $110 $1,221 · Alvarado $110 $1,251.25).
15% of total · same punches → $1,265.
Five 8h · 10% (no OT week) → $880 (vs /overtime/ $800).
0% → $1,100 (ordinary after-40).
Contrast flat 778.209 · same $110 → $1,221.
CFR-style $12 · 50h · 10% → $726 (vs RR flat same $ $732.60).

Sources

29 CFR § 778.210 — Percentage of total earnings as bonus (Cornell LII, HTTP 200)
29 CFR § 778.210 — eCFR current (HTTP 200)
WHD Fact Sheet #56C — Bonuses under the FLSA (HTTP 200)
29 CFR § 778.209 — Method of inclusion of bonus in regular rate (cousin)
29 CFR § 778.503 — Pseudo “percentage” evasion devices
/flsa-regular-rate/ — 778.209 flat nondiscretionary cousin
/california-alvarado-flat-bonus-overtime/ — CA flat-sum ÷ non-OT cousin

FAQ

Classic five 10h + 10%?

Base $1,100 + bonus $110 → $1,210 vs /overtime/ $1,100 vs RR flat $110 $1,221 vs Alvarado $1,251.25.

Same as /flsa-regular-rate/ bonus?

No. Regular-rate pages include a flat nondiscretionary in RR and recompute. 778.210’s percent-of-total plan skips that recomputation because OT on the bonus is already inside the percentage.

Same as California Alvarado?

No. Alvarado divides a flat-sum bonus by non-OT hours and pays CA daily 1.5×/2× on that bonus RR. 778.210 is federal percent-of-total with no recomputation.

Evasion / 778.503?

Check the evasion toggle — force 778.209 recomputation (classic same punches → $1,221).

No overtime in the week?

Five 8h + 10% → $880 vs /overtime/ $800. The percent still applies to total earnings.