FLSA2018-11 — Job bonuses and section 7(e)

U.S. Department of Labor Wage and Hour Division
Washington, D.C. 20210

FLSA2018-11
January 5, 2018
Dear Name*:
This letter responds to your request that the Wage and Hour Division (“WHD”) reissue Opinion
Letter FLSA2009-30. On January 16, 2009, then-Acting WHD Administrator Alexander J.
Passantino signed the opinion letter as an official statement of WHD policy. On March 2, 2009,
however, WHD withdrew the opinion letter “for further consideration” and stated that it would
“provide a further response in the near future.”
We have further analyzed Opinion Letter FLSA2009-30. From today forward, this letter, which
is designated FLSA2018-11 and reproduces below the verbatim text of Opinion Letter
FLSA2009-30, is an official statement of WHD policy and an official ruling for purposes of the
Portal-to-Portal Act, 29 U.S.C. § 259.
I thank you for your inquiry.

Bryan L. Jarrett
Acting Administrator

Dear Name*:
This is in response to your request for an opinion regarding whether certain job bonuses must be
included in the regular rate under section 7(e) of the Fair Labor Standards Act (FLSA).
1
Based
on the information provided, it is our opinion that the job bonuses should be included in the
regular rate.
Your client, an oilfield services company, provides cementing, acidizing, fracturing, sand
control, and other services for drilling and completion of oil and gas wells and remedial work on
existing wells in the petroleum industry. The company employs non-exempt equipment

1
Unless otherwise noted, any statutes, regulations, opinion letters, or other interpretive material cited in this letter
can be found at www.wagehour.dol.gov.

operators who are paid an hourly wage above the minimum wage and overtime wages for hours
worked in excess of 40 hours per week. Generally, equipment operators operate commercial
vehicles, such as tractor trailers, semi trucks, and/or tanker trucks on a daily basis between
district offices and customers’ oil and gas well locations to deliver company products, service
tools, and equipment. Equipment operators generally load and unload the vehicle; participate in
rigging the equipment at the customer’s worksite, such as connecting hoses and high pressure
pipes to equipment at the customer’s wellhead; and operate the equipment for the desired service
at the well site.
The company wishes to pay its equipment operators, in addition to hourly wages, a “job bonus,”
consisting of a flat dollar amount per day (e.g., $100.00 for each day worked). The “job bonus”
would be paid for each day worked, and does not appear to be conditioned on any other factor.
You ask whether such a bonus should be included in the regular rate.
With limited exceptions, the FLSA provides that the “regular rate” includes “all remuneration for
employment paid to, or on behalf of, the employee.” 29 U.S.C. § 207(e). The proposed job
bonus meets none of the exceptions for being excluded from an employee’s regular rate of pay
and, therefore, must be included in the regular rate.
2
See 29 U.S.C. § 207(e)(1) - (7).
This opinion is based exclusively on the facts and circumstances described in your request and is
given based on your representation, express or implied, that you have provided a full and fair
description of all the facts and circumstances that would be pertinent to our consideration of the
question presented. Existence of any other factual or historical background not contained in your
letter might require a conclusion different from the one expressed herein. You have represented
that this opinion is not sought by a party to pending private litigation concerning the issues
addressed herein. You have also represented that this opinion is not sought in connection with
an investigation or litigation between a client or firm and the Wage and Hour Division or the
Department of Labor.
We trust that this letter is responsive to your inquiry.
Sincerely,

Alexander J. Passantino
Acting Administrator
*Note: The actual name(s) was removed to preserve privacy in accordance with 5 U.S.C. §
552(b)(7).

2
In reaching this conclusion, we express no opinion as to whether the equipment operators are eligible for any of the
minimum wage and/or overtime exemptions provided by the Act, including, but not limited to, the exemption
provided under 29 U.S.C. § 213(b)(1).