What distinguishes a non-discretionary bonus under FLSA?

A non-discretionary bonus under the Fair Labor Standards Act (FLSA) is characterized by being part of the employee's regular pay. In other words, it is a payment that an employee has earned based on predetermined criteria set by the employer, such as achieving specific performance goals or meeting certain productivity standards. This type of bonus is expected and can be calculated as part of the employee’s salary, which makes it a regular component of their pay structure.

In contrast, a discretionary bonus would be one that the employer gives out freely and does not have to be included in the employee's regular pay calculations, as it is not tied to specific earned criteria. Therefore, the essence of a non-discretionary bonus is that it is anticipated and incorporated into the employee's earnings, affecting calculations like overtime pay.

Other options do not accurately reflect the nature of a non-discretionary bonus, as they either suggest it is contingent upon subjective employer judgment, limited to specific times, or connected only to tenure, which do not align with its definition under the FLSA.