In a case of first impression, the U.S. Court of Appeals for the Third Circuit has upended a lower court’s ruling that all employees’ incentives and bonuses from third parties count as remuneration under the Fair Labor Standards Act.

A three-judge appellate panel consisting of Third Circuit Chief Judge D. Brooks Smith and Judges Kent A. Jordan and Marjorie O. Rendell affirmed in part and reversed in part the ruling of a Pennsylvania federal judge in Secretary United States Department of Labor v. Bristol Excavating.

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