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July 28, 2009
Be Careful with OT Calculations

QuikTrip Corp. has agreed to pay $747,729 to more than 3,800 current and former convenience store employees after the Department of Labor accused the company of calculating overtime incorrectly.

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The department alleged that the Tulsa-based QuikTrip violated the Fair Labor Standards Act (FLSA) by failing to include performance-related bonuses in overtime calculations.

While there is no requirement for an employer to provide a bonus, if a nondiscretionary bonus is paid, the bonus must be included as part of the employee's regular rate of pay for purposes of calculating overtime.

Bonuses are nondiscretionary if the employer promises, contracts, or agrees to pay a bonus to the employee. For example, bonuses for quality and accuracy of work are nondiscretionary.

The employees worked in the states of Arizona, Georgia, Illinois, Iowa, Kansas, Missouri, Nebraska, Oklahoma, and Texas .


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