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The brand new boss has complete freedom inside choosing who will get they, whenever, and how much. Discretionary bonuses commonly within the typical rates from pay to have FLSA overtime calculations. An advantage try discretionary whenever both the decision to spend and you may the amount is at the brand new company's sole discretion, plus the employee doesn't know about it in advance. So it judge change issues to have overtime data possesses trapped of a lot companies off-guard through the Agency from Labor audits. eleven.6%Mediocre incentive commission since the a portion of salary to possess exempt (salaried) team (WorldatWork, 2024) Whether it's shorter otherwise removed, personnel become punished rather than just perhaps not rewarded.