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Might Your Sign-On Bonus Clawback Create an Overtime Problem? A Federal Court Just Answered.

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ign-on bonuses with clawback provisions are common. Their interaction with overtime pay calculations is not well understood. A federal court in Virginia just issued a ruling that every employer using these bonuses should read.

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DR: A federal court dismissed an FLSA overtime claim brought by an employee who argued his sign-on bonus should have been pro-rated into his overtime rate over the 12-month clawback period. The court held that because

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