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Bonus Payments (including Incentive Compensation)
National Summary
Many employers offer their employees various types of bonuses—including performance awards, gain-sharing systems, and profit sharing. While bonuses are generally used to reward performance, awards are not directly tied to job performance and are usually offered for perfect attendance, for providing new hire referrals, to recognize an outstanding employee, to motivate employees to work safely, or to reward employee suggestions. There are various legal and tax considerations for employers giving awards and bonuses to their employees. Promised bonuses may be construed as contracts by the courts, while the Fair Labor Standards Act (FLSA) requires employers to count nondiscretionary bonuses in an employee's regular rate of pay for the purpose of calculating overtime.
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TopicTypeTitleDateState
2139timesavers.aspxBonus PaymentsLetters Announcement of a Bonus Payment  National
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3050state_comparison_charts.aspxBonus PaymentsGuidance Communicating ESOP advantages  National
2220timesavers.aspxBonus PaymentsPolicies Employee Referral Program  National
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2660state_comparison_charts.aspxBonus PaymentsGuidance Employee Stock Ownership Plans (ESOP)  National
3062state_comparison_charts.aspxBonus PaymentsGuidance Executive Short-term Variable Pay Programs  National
2157timesavers.aspxBonus PaymentsLetters Explanation of Individual Bonus Payment  National
3046state_comparison_charts.aspxBonus PaymentsGuidance Gainsharing  National
9301timesavers.aspxBonus PaymentsForms Matching Gift Form  National
1558timesavers.aspxBonus PaymentsForms Merit Rating Review Form  National
3047state_comparison_charts.aspxBonus PaymentsGuidance Objective-Based Pay  National
3051state_comparison_charts.aspxBonus PaymentsGuidance Pay At-Risk  National
2653state_comparison_charts.aspxBonus PaymentsGuidance Profit-Sharing Plans  National
1199timesavers.aspxBonus PaymentsPolicies Progression Pay Increases (Hourly)  National
3061state_comparison_charts.aspxBonus PaymentsGuidance Sales Team Incentives  National
3063state_comparison_charts.aspxBonus PaymentsGuidance Sign-On Bonuses  National
3053state_comparison_charts.aspxBonus PaymentsGuidance Team-Based Rewards  National
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