[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1878 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1878

   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 SENATE OF THE UNITED STATES

                            November 8, 1999

Mrs. Hutchison (for herself, Mr. Nickles, Mr. Brownback, Mr. Voinovich, 
     Mr. Ashcroft, Mr. Craig, Mr. Enzi, Mr. Thomas, and Mr. Helms) 
introduced the following bill; which was read twice and referred to the 
          Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 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 ``Bonus Incentive Act''.

SEC. 2. REGULAR RATE FOR OVERTIME PURPOSES.

    Section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
207(e)) 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, incentive bonus, commission, or 
        performance contingent bonus plan''; and
            (2) by inserting after paragraph (7) the following:
``A plan described in paragraph (3)(d) 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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