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Seyfarth Synopsis: The Court of Appeal decision that held that employers may use the federal formula for calculating
overtime on a flat sum bonus is no longer citable precedent as the California Supreme Court has granted review of the
decision.
Seyfarth Synopsis:The Court of
Appeal decision that held that employers may use the federal
formula for calculating overtime on a flat sum bonus is no longer
citable precedent as the California Supreme Court has granted
review of the decision.
On January 22, 2016, we reported on Alvarado v. Dart
Container Corp. of California, (click here to read), in which the California Court
of Appeal held that an employer can use the federal formula for
calculating overtime on a flat sum bonus, even though the
California Division of Labor Standards Enforcement Manual states
otherwise. On May 11, 2016, the California Supreme Court granted
review in the case. Since the California Supreme Court has granted
review, Alvarado is no longer citable as precedent. We
will report on the result of this case once the California Supreme
Court has issued its decision.
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