Final answer:
Discretionary bonuses do not count toward the regular rate of pay for overtime calculations. These bonuses are given at the employer's discretion and are not tied to specific performance criteria or work hours, unlike production bonuses, sales commissions, and shift premiums.
Step-by-step explanation:
The item that does not count toward the regular rate of pay for overtime calculations is discretionary bonuses. According to the Fair Labor Standards Act (FLSA), overtime pay is generally calculated based on an employee's regular rate of pay. This includes all remuneration for employment, except for certain payments excluded by the act itself. While production bonuses, sales commissions, and shift premiums are typically factored into the regular rate of pay because they are compensation for hours worked, performance, or specific conditions under which the work is performed, discretionary bonuses are not.
Discretionary bonuses are those given by an employer at their discretion, typically as gifts or rewards that are not tied to any specific performance criteria, hours worked, or efficiency. As such, they do not need to be included when calculating the regular rate of pay for overtime purposes.