Incentive Pay

In some businesses, tips and gratuities make up part of employees’ pay in addition to wages. In other businesses, piece rates, commissions and bonuses make up part of employees’ pay. You must understand the distinction between these forms of pay. The distinction is important because certain wage and hour laws contain exceptions for commissioned employees (for example, timing of wage payments, final wages and exemptions from overtime) and determine whether and when payment of these types of wages is due.​​