What happens when a well-meaning CEO greenlights a new bonus structure, excited to boost morale and retention… but it’s at the wrong rate of pay?

By June 3, 2025HR Blog

6.3.25   

By Jennifer Jacobus, PHRca, SDEA CEO

Imagine this…
A well-meaning CEO greenlights a new bonus structure, excited to boost morale and retention. HR implements it quickly, unaware that the bonus should be factored into the regular rate of pay for overtime calculations under California law. A few months later, a disgruntled employee raises the issue and now the company is facing potential wage and hour claims, back pay obligations, and penalties. The worst part? No one knew the rule existed.

 

In California, employment law isn’t just complicated, it’s constantly changing. From wage and hour laws to protected leaves, remote work policies, and discrimination protections, the legal environment can be a minefield for the unprepared. And for employers, HR professionals, and executives, “I didn’t know” is not a valid defense.

 

Even unintentional violations can result in costly lawsuits, audits, and reputational damage.

 

That’s why you need to attend SDEA’s Mid-Year Employment Law Update.
This webinar is designed to bring you up to speed on the latest legislative changes, court decisions, and compliance trends impacting California employers. Led by Chris Olmsted from Ogletree Deakins, SDEA’s update will give you the tools and clarity to avoid costly missteps and make informed decisions for the rest of the year.

 

 

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