Concept: Flat Sum Bonus Calculation Impacts When Workers Move Companies (USA)
Flat Sum Bonus is based on coverage dates regardless of a worker's position, job, or company. Coverage dates determine how the bonus and regular hours are considered for Flat Sum Bonus calculations.
If a worker moves from 1 company to another and the companies are in an FLSA relationship:
Example 1 : Paying a Flat Sum Bonus with coverage dates targeted to the current and prior company. | Sam works in Job A (Company A), gets paid 40 hours regular and 1 hour of overtime, for pay period 1 (2023-05-01 to 2023-05-07). They move to Job B (Company B) during pay period 2 (2023-05-08 to 2023-05-14). For pay period 2, they get paid 40 hours regular, 1 hour of overtime, and a Flat Sum Bonus with coverage dates 2023-05-01 to 2023-05-14. Workday calculates Flat Sum overtime premium rate based on the total hours for both prior and current company |
Example 2 : Paying a Flat Sum Bonus with coverage dates targeted only to the prior company. | Sam works in Job A (Company A), gets paid 40 hours regular and 1 hour of overtime, for pay period 1 (2023-05-01 to 2023-05-07). They move to Job B (Company B) during pay period 2 (2023-05-08 to 2023-05-14). For pay period 2, they get paid 40 hours regular, 1 hour of overtime, and a Flat Sum Bonus with coverage dates 2023-05-01 to 2023-05-07. Workday calculates Flat Sum Bonus overtime premium rate based on total hours for the prior company. |
Example 3 : Paying Flat Sum Bonus when moving midperiod. | Sam works in Job A (Company A), gets paid 40 hours regular and 1 hour of overtime, for pay period 1 (2023-05-01 to 2023-05-07). They move to Job B (Company B) during pay period 2 (2023-05-08 to 2023-05-14). For pay period 2, they get paid 40 hours regular, 1 hour of overtime, and a Flat Sum Bonus with coverage dates 2023-05-01 to 2023-05-07. Workday calculates Flat Sum Bonus overtime premium rate based on total hours for the prior company. |