The payment of the Performance Bonus Lump Sum Payment (Paragraph (99)(a)) will be paid to eligible members in Roll 23 (week ending June 4, 2017) and distributed during week ending June 11, 2017.
The eligibility date for this payment is May 15, 2017. Members who were active, on FMLA, or temporary layoff on May 15, 2017, or went on a qualifying Leave of Absence within 90 days of May 15, 2017, are defined as eligible. Such eligible members shall receive a Lump Sum Payment of $1,000.
Eligibility for Partial Payment
Otherwise eligible members who retired or passed away during the twelve (12) month period prior to May 15, 2017 may be eligible for a partial payment (Paragraph (99)(b)). The payment schedule for deceased or retired members will be based on the following table:
Overtime Recalculation Payment
The Fair Labor Standard Act (FLSA) dictates an overtime recalculation for the Performance Bonus Lump Sum Payment. The FLSA requires such bonuses to be rolled into the FLSA “regular rate” for the purpose of calculating overtime payments. The basic premise of the FLSA is that hours WORKED over 40.0 in a week must be paid at a minimum of time and one-half. When awards are based on a percentage of defined wages, this isn’t an issue because overtime payments are included in the definition. The Performance Bonus Lump Sum Payment is not based on a percentage of wages, so a portion of the bonus must be attributed to each hour worked to calculate overtime due to members.
The overtime recalculation payment will be paid to eligible employees in Roll 24 (week ending June 11, 2017), and distributed during week ending June 18, 2017. Overtime recalculation payments tend to cause questions among the membership because the amounts paid to members vary, depending on the number of hours in excess of 40.0 the member worked each week, during the qualifying eligibility period (May 16, 2016 through May 15, 2017).
If you have any questions concerning the Performance Bonus Lump Sum Payment, please contact your Local Union Representative.