Feature · Labor Law Compliance

Bonuses that motivate crews. Wages that hold up in court.

The same bonus that drives performance can become a DOL wage claim if it's not structured right. Protiv builds the overtime recalculation into every bonus — automatically, every pay period.

Audit ready ✓ WORKER STATEMENT · APR 1–14, 2026 Regular wages $1,240.00 Performance bonus IN RATE +$280.00 OT supplement +$14.09 Total gross pay $1,534.09 ✓ Overtime recomputed REGULAR RATE, WITH BONUS Bonus spread over hours $280 ÷ 44.5 hrs Raises the regular rate for the week +$6.29/hr Half-time premium +$3.15/hr Applied to 4.5 overtime hours → +$14.09 owed Paid automatically, every period ✓ Field-level audit log ✓ 2–3 yr lookback ✓

Three layers of protection

Built to survive an audit.

Performance bonuses change what you owe in overtime. Most operators either miss that or dread it. Protiv does the math the same way every period, shows the worker, and keeps the record.

1

Compute the regular rate correctly

A performance bonus raises the regular rate for the week it was earned. Protiv spreads it across the hours worked and pays the half-time premium on overtime hours — automatically, every period.

2

Show the worker the math

Every worker gets a statement each period showing base wage, bonus rate, effective wage and the overtime adjustment — not just a number at the bottom.

3

Keep the record

Every change is logged at field level, per user, per organization. If anyone asks how a number was reached — a worker, your accountant, the DOL — you can reconstruct it.

What compliance actually covers

Every edge case, covered.

Labor law compliance isn’t one feature. It’s a layer built into ProPay’s architecture — from how bonuses are structured to what workers see to what finance can export during an audit.

Capability 1 — The legal foundation

Performance bonuses change overtime. Protiv does the math.

A bonus tied to production or quality is nondiscretionary, so the FLSA requires it in the regular rate for the workweek it was earned in. That raises the overtime rate for that week.

In a spreadsheet this is the step people skip, because it means recomputing overtime after the bonus is known. Protiv spreads the bonus across the hours it was earned over, applies the half-time premium to the overtime hours, and adds it to the statement — every period, without anyone remembering to.

  • Bonus spread across the hours it was earned over
  • Half-time premium applied to overtime hours
  • Daily, weekly and seventh-consecutive-day thresholds, configurable
  • Integrated with payroll exports
REGULAR RATE CALCULATION WITH PROTIV — overtime recomputed on the bonus Regular wages for period $1,240.00 Performance bonus, added to the rate +$280.00 Regular rate  ·  Half-time premium $31.00  ·  +$3.15/hr ✓ Based on $280 ÷ 44.5 hrs VS BONUS PAID, OVERTIME NEVER REVISITED SPREADSHEET — bonus paid, regular rate untouched Regular wages + bonus paid $1,520.00 Regular rate  ·  Half-time premium $28.00  ·  $0.00/hr ✗ Unpaid overtime accrues every period a bonus is paid Goes back 2–3 years under FLSA lookback period
Capability 2 — Worker documentation

Workers see exactly how their pay is calculated.

A bonus that a worker cannot check is a bonus they do not trust. Most payroll software shows a line item and a total. Protiv shows the working.

Every worker receives a statement at the end of each period showing their regular wages, their performance bonus, the overtime adjustment, and how each number was reached. Delivered through the app, in English, Spanish or Portuguese.

  • Auto-generated every pay period, zero prep
  • Shows the bonus rate and the overtime adjustment
  • Multi-language: English, Spanish, Portuguese
  • Employer signature and date for audit record
WAGE NOTICE April 1–14, 2026 · Jordan Martinez EARNINGS BREAKDOWN Regular wages (40 hrs @ $31.00) $1,240.00 OT supplement (4 hrs @ $15.50) $62.00 Performance bonus IN RATE +$280.00 Total gross pay $1,582.00 How this was calculated: Your bonus was added to your regular rate for the week, so overtime was recalculated and the difference paid to you. Certified by: Westside Landscape Services, Inc. · April 14, 2026 Powered by Protiv · DOL Form WH-55 compatible
Capability 3 — Held and deferred bonuses

Bonuses held back. Legally. With documentation.

When bonuses are held pending a callback period, safety review, or quality inspection, the legal structure matters. In most states, a bonus that’s been “earned” can’t be clawed back without triggering wage claim exposure.

Protiv’s Held Bonus Ledger structures bonuses as conditional — unearned until the release conditions clear. Every hold, condition, and resolution is documented. If a worker disputes a held bonus, you have the record.

  • Bonuses classified as conditional until release
  • Conditions documented: callback, safety, quality
  • Timestamped hold and release records
  • Worker-visible status throughout hold period
HELD BONUS LEDGER Oak Hill Estate · ProPay #2841 HELD Bonus computed $340.00 Quality inspection passed Cleared Apr 18 No safety violations on record Cleared Apr 15 · 30-day callback window Clears May 14 Scheduled release May 14, 2026 Why this matters legally Bonus is classified as “conditional — not yet earned.” This structure is defensible in most state wage proceedings. Every hold is timestamped and auditable. Visible to worker in app ✓
Capability 4 — DOL readiness

If DOL calls, you hand them a file.

FLSA has a 2–3 year back-pay lookback period. A wage claim filed today can reach back to payments you made in 2023. Most operators can’t produce that history. Protiv keeps it for you.

Every ProPay calculation is stored with the job, the worker, the regular rate basis, the bonus amount, the overtime adjustment and the final payout. One export. Clean. Complete.

  • Full calculation history, per-worker
  • 3-year lookback coverage, automatic
  • Export: CSV or PDF, per period or per worker
  • Fields map to DOL Form WH-55 requirements
Audit Export — Q1 2026 Export CSV → DATE WORKER REG. RATE BONUS IN RATE OT RATE Apr 14 J. Martinez $31.00 $280 excl. $46.50 ✓ Apr 14 R. Calderon $29.50 $220 excl. $44.25 ✓ Mar 31 T. Washington $32.00 $310 excl. $48.00 ✓ Mar 31 M. Gutierrez $28.75 $195 excl. $43.13 ✓ · · · 847 more records · · · RECORDS 851 LOOKBACK 3 yrs RECOMPUTED 100%

Common questions

“Don’t performance bonuses change what I owe in overtime?”

They do. That is the part most operators get wrong. Here are the questions people actually ask — answered honestly.

Do bonuses have to be included in overtime pay?
Yes. A production or quality bonus is nondiscretionary, so it belongs in the regular rate for the week it was earned, which raises the overtime rate for that week. Protiv computes it for you: the bonus is spread across the hours worked, the half-time premium is applied to the overtime hours, and the adjustment lands on the worker’s statement.
What if we get audited by the DOL?
Protiv keeps a timestamped record of every calculation — the regular rate basis, the overtime adjustment and the payout — plus a field-level log of every change. If DOL audits, you export the file for every pay period you have run on Protiv.
We run payroll in QuickBooks or Paycom — does this still work?
Yes. Protiv exports payroll-ready files to your provider. The overtime adjustment, the worker statement and the audit trail all happen in Protiv. Your payroll processor receives clean, compliant numbers — not the problem to solve.
Can a worker check the math themselves?
Yes, and that is the point. The statement shows base wage, bonus rate, effective wage and the overtime adjustment, in English, Spanish or Portugueses and generates notices that meet each state’s requirements. Multi-state operations get multi-state coverage automatically, without manual tracking.
Can bonus rules change mid-year?
Yes, with documentation. Rule changes are versioned and timestamped in Protiv. Every historical calculation is traceable back to the rules in effect at that time — so a mid-year change doesn’t create a retroactive compliance gap.
What if a worker disputes a bonus deduction?
Every hold, reduction, and penalty is documented in the Held Bonus Ledger with the condition, the trigger, and the timestamp. Workers see the status of any held bonus in the app. The documentation exists before the dispute — not after it. Read more about Safeguards →

15 minutes a week. Audit-ready, every period.

The overtime adjustment is computed at period close. The worker statement generates itself. The audit trail writes itself. Your job is approving the bonuses — the legal structure takes care of itself.

See the dashboard →

What this means for your business

Every DOL audit starts with the same question: show me the math.

2–3 yrs
DOL back-pay lookback
One claim filed today can reach back to 2023. Most operators can’t produce that history. Protiv keeps it automatically.
0.5×
Half-time premium on overtime hours
A bonus raises the regular rate for the week it was earned. Protiv applies the premium to every overtime hour in that week.
Every period
Overtime recomputed and shown
Not once at setup, not when someone remembers. Every bonus, every period, on the worker’s statement and in the audit log.

“We’d been running bonuses for four years without knowing our OT was miscalculated on every single check. Protiv’s structure would have caught that on day one.”

— Owner · Multi-location landscaping operation · Southeast US

See your bonus structure through compliance eyes.

30 minutes with our team. We’ll walk through your current bonus setup, show you how the overtime recalculation lands, and run the numbers on your last 12 months — before a DOL auditor does it first.