The same bonus that drives performance can become a DOL wage claim if it's not structured right. Protiv builds FLSA §7(e) compliance into every calculation — automatically, every pay period.
Three layers of protection
Performance bonuses create compliance exposure most operators don’t know they have. Protiv structures every bonus to eliminate that risk before the first check clears.
Bonuses tied to productivity qualify for exclusion from the regular rate. Protiv applies this structure automatically so OT computes on base wages only — not total comp.
Over 30 states require workers to receive documentation of how their pay is calculated. Protiv generates and serves wage notices every pay period. No manual prep.
Every bonus computation is timestamped and stored. If DOL ever asks, the math is already documented — down to the regular rate basis and §7(e) classification for each payout.
What compliance actually covers
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.
Under FLSA §7(e)(3)(a), bonuses tied to production and quality can be excluded from the regular rate used to calculate overtime. Your OT computes on base wages only — not on bonus pay.
In a spreadsheet, getting this right requires knowing the statute, writing the formula, and never making a mistake. In Protiv, it’s the default. Every ProPay bonus carries the §7(e) exclusion structure the moment it’s created.
Over 30 states require employers to provide wage notices — written documentation of how pay is computed, including bonus calculations. Most payroll software handles a basic pay stub. Protiv goes further.
Every worker receives a statement at the end of each period showing their regular wages, their performance bonus, the §7(e) classification, and their OT calculation. Delivered through the app. Multi-language, multi-state.
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.
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 §7(e) bonus amount, the OT hours, and the final payout. One export. Clean. Complete.
Common questions
Not when they’re structured correctly. Here are the questions operators actually ask — answered honestly.
What this means for your business
“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
30 minutes with our team. We’ll walk through your current bonus setup, show you where §7(e) applies, and run the numbers on your last 12 months — before a DOL auditor does it first.