...Habib Jouber; Hamadi Fakhfakh Purpose The optimal contracting view assumes that compensation arrangements should not reward performance upward that is beyond the management's control. Critics to this view assert, however that unearned compensation boom may be suggestive of pay for luck. Hence...

... directions for research are suggested. Practical implications This paper highlights the importance for employers to consider far more than just their non‐exempt employees’ hourly wage rate in the calculation of employees’ regular rate of pay in order to ensure proactive FLSA compliance. Orginality...