Fact Sheet #56C: Bonuses under the Fair Labor Standards Act …
Discretionary bonuses are excludable from the regular rate of pay. A bonus is discretionary only if all the statutory requirements are met: The bonus payment is not made according to any prior contract, agreement, or promise causing an employee to expect such payments regularly.
Discretionary vs. Nondiscretionary Bonuses: Key Differences
2024年6月28日 · Discretionary and nondiscretionary bonuses are two options employers have for awarding additional pay to their employees. Understanding the differences between these strategies can help you decide whether to include an incentive pay …
What is a Discretionary Bonus: Our Guide to Discretionary Bonuses
2023年3月27日 · What is a Discretionary Bonus? The Department of Labor (DoL) defines a bonus as “a payment made in addition to the employee’s regular earnings.” A discretionary bonus is given to non-exempt employees at the sole discretion of the employer, and is not related to any criteria or goals set.
What is a Discretionary Bonus? Examples and Calculations - Salary.com
2024年8月23日 · One type of bonus that is commonly used but not always fully understood is the discretionary bonus. This article will explore what a discretionary bonus is, provide examples, explain how it is calculated, compare it to non-discretionary bonuses, and discuss tax implications and compliance.
What is the difference between a discretionary and a ... - SHRM
A discretionary bonus is a form of variable pay; the amount, requirements, timing and announcement of the bonus should not be disclosed in advance, as this may appear to be a motivator or ...
What Is a Discretionary Bonus? - business.com
2023年10月13日 · What is a discretionary bonus? A discretionary bonus is a form of additional compensation that the employer independently decides to give to an employee without the employee expecting it. The discretionary bonus is not attached to the employee’s achievement of specific expectations or goals.
What Is a Discretionary Bonus? Definition & Examples - AIHR
A discretionary bonus is a sum of money given to an employee at the employer’s discretion, typically as a reward for exceptional performance, contribution to the organization’s success, or other discretionary reasons.
What are Discretionary Bonuses? (And How To Use Them)
2024年11月8日 · What Is a Discretionary Bonus? A discretionary bonus is a bonus given at the employer's express discretion. By definition, it is unplanned and given outside of the normal compensation plan or performance-based incentive plans.
Bonus Coverage: Discretionary vs. Nondiscretionary
2021年2月16日 · Discretionary. According to the FLSA regulations and DOL guidance, discretionary bonuses don’t have to be included in the regular rate calculation. To be deemed discretionary, however, all of the following requirements must be met: The employer must have the sole discretion at or near the time of payment to determine whether to pay it;
What Is a Discretionary Bonus? Definition & Requirements
Discretionary Bonus Definition. A discretionary bonus is extra money given to your employees as a complete surprise. Unlike a regular bonus, which your employees might earn by meeting or exceeding sales targets or hitting a specific production quota, a discretionary bonus is paid at the employer’s whim.