Mixing
Are bonuses included in the salary base requirement for FLSA overtime exemption rules?
Clash Royale CLAN TAG#URR8PPP
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty margin-bottom:0;
up vote
6
down vote
favorite
The Fair Labor Standards Act (FLSA) specifies (among other things) a minimum salary requirement for an employee to qualify as exempt from their overtime regulations.
Can bonuses be included in that salary calculation?
overtime exempt flsa
asked Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
suggest improvements |Â
up vote
6
down vote
favorite
The Fair Labor Standards Act (FLSA) specifies (among other things) a minimum salary requirement for an employee to qualify as exempt from their overtime regulations.
Can bonuses be included in that salary calculation?
overtime exempt flsa
asked Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
This question was created as my original answer on this question was answering the general case of bonuses instead of the OP's specific question. Note that this is not an off-topic legal question as questions that a HR professional (and consequently a manager or small-business owner) should know the answer to have been deemed on-topic here. This can be answered by simply stating the relevant regulations (as I have done), it doesn't require interpretation of the law for a specific situation
– Lilienthal♦
Jun 16 '16 at 10:50
suggest improvements |Â
up vote
6
down vote
favorite
up vote
6
down vote
favorite
The Fair Labor Standards Act (FLSA) specifies (among other things) a minimum salary requirement for an employee to qualify as exempt from their overtime regulations.
Can bonuses be included in that salary calculation?
overtime exempt flsa
asked Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
The Fair Labor Standards Act (FLSA) specifies (among other things) a minimum salary requirement for an employee to qualify as exempt from their overtime regulations.
Can bonuses be included in that salary calculation?
overtime exempt flsa
asked Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
edited Jun 16 '16 at 10:55
asked Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
asked Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
asked Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
53.9k36183218
This question was created as my original answer on this question was answering the general case of bonuses instead of the OP's specific question. Note that this is not an off-topic legal question as questions that a HR professional (and consequently a manager or small-business owner) should know the answer to have been deemed on-topic here. This can be answered by simply stating the relevant regulations (as I have done), it doesn't require interpretation of the law for a specific situation
– Lilienthal♦
Jun 16 '16 at 10:50
suggest improvements |Â
This question was created as my original answer on this question was answering the general case of bonuses instead of the OP's specific question. Note that this is not an off-topic legal question as questions that a HR professional (and consequently a manager or small-business owner) should know the answer to have been deemed on-topic here. This can be answered by simply stating the relevant regulations (as I have done), it doesn't require interpretation of the law for a specific situation
– Lilienthal♦
Jun 16 '16 at 10:50
This question was created as my original answer on this question was answering the general case of bonuses instead of the OP's specific question. Note that this is not an off-topic legal question as questions that a HR professional (and consequently a manager or small-business owner) should know the answer to have been deemed on-topic here. This can be answered by simply stating the relevant regulations (as I have done), it doesn't require interpretation of the law for a specific situation
– Lilienthal♦
Jun 16 '16 at 10:50
This question was created as my original answer on this question was answering the general case of bonuses instead of the OP's specific question. Note that this is not an off-topic legal question as questions that a HR professional (and consequently a manager or small-business owner) should know the answer to have been deemed on-topic here. This can be answered by simply stating the relevant regulations (as I have done), it doesn't require interpretation of the law for a specific situation
– Lilienthal♦
Jun 16 '16 at 10:50
suggest improvements |Â
1 Answer
1
active
oldest
votes
up vote
3
down vote
Until December 1st 2016, bonuses cannot be considered at all for the FLSA overtime exemption salary requirement.
Once the upcoming changes to the FLSA overtime rules come into effect on December 1st 2016, up to 10% of the minimum salary can be made up of nondiscretionary bonuses and/or commissions:
Bonuses and Commissions May Now Be Included: In a somewhat surprising concession to employers, the new rules will allow non-discretionary bonuses, incentive payments and commissions to count for up to 10% of the minimum salary, provided these amounts are paid at least quarterly.
Details of the upcoming changes are outlined in my answer here. Further detail on the salary and duties tests are in my answer here.
Full details of the changes are covered in the United States Department of Labor's Wage and Hour Division's FAQ on the "Overtime Final Rule". I have reproduced the section on bonuses in full here:
NONDISCRETIONARY BONUSES AND INCENTIVE PAYMENTS
May employers use bonuses to satisfy part of the new standard salary level test?
Yes. The Department is changing the regulations to allow
nondiscretionary bonuses and incentive payments (including
commissions) to satisfy up to 10 percent of the standard salary test
requirement. Such bonuses include, for example, nondiscretionary
incentive bonuses tied to productivity or profitability (e.g. a bonus
based on the specified percentage of the profits generated by a
business in the prior quarter). The Department recognizes that some
businesses pay significantly larger bonuses; where larger bonuses are
paid, however, the amount attributable toward the EAP standard salary
level is capped at 10 percent of the required salary amount.
For employers to credit nondiscretionary bonuses and incentive
payments (including commissions) toward a portion of the standard
salary level test, such payments must be paid on a quarterly or more
frequent basis.
What's the difference between a discretionary bonus and a nondiscretionary bonus?
Nondiscretionary bonuses and incentive payments (including
commissions) are forms of compensation promised to employees to induce
them to work more efficiently or to remain with the company. Examples
include bonuses for meeting set production goals, retention bonuses,
and commission payments based on a fixed formula.
By contrast, discretionary bonuses are those for which the decision to
award the bonus and the payment amount is at the employer's sole
discretion and not in accordance with any preannounced standards. An
example would be an unannounced bonus or spontaneous reward for a
specific act.
May employers make a catch-up payment in the event that an employee doesn't receive enough in nondiscretionary bonuses and incentive payments (including commissions) in a given quarter to remain exempt?
Yes, if an employee does not earn enough in nondiscretionary bonuses
and incentive payments (including commissions) in a given quarter to
retain their exempt status the Department permits a "catch-up" payment
at the end of the quarter. The employer has one pay period to make up
for the shortfall (up to 10 percent of the standard salary level for
the preceding 13 week period). Any such catch-up payment will count
only toward the prior quarter's salary amount and not toward the
salary amount in the quarter in which it was paid. If the employer
chooses not to make the catch-up payment, the employee would be
entitled to overtime pay for any overtime hours worked during the
quarter.
Does the Final Rule change how employers may use bonuses to satisfy the salary level for highly compensated employees (HCEs)?
No, the Department has not made changes to how employers may use
bonuses to meet the salary level component of the HCE test. To claim
the HCE exemption under the Final Rule, employers must pay workers at
least the standard weekly salary level of $913 per week on a salary or
fee basis, while the remainder of the total annual compensation may
include commissions, nondiscretionary bonuses, and other
nondiscretionary compensation. Because employers may fulfill almost
two-thirds of the HCE total annual compensation requirement with
commissions, nondiscretionary bonuses, and other forms of
nondiscretionary deferred compensation, the Department determined that
it would not be appropriate to permit employers to also use
nondiscretionary bonuses and incentive payments to satisfy the
standard salary amount.
Source: Final Rule: Overtime, United States Department of Labor's Wage and Hour Division's, retrieved 2016-06-15.
edited Apr 13 '17 at 12:48
Community♦
1
answered Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
suggest improvements |Â
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
3
down vote
Until December 1st 2016, bonuses cannot be considered at all for the FLSA overtime exemption salary requirement.
Once the upcoming changes to the FLSA overtime rules come into effect on December 1st 2016, up to 10% of the minimum salary can be made up of nondiscretionary bonuses and/or commissions:
Bonuses and Commissions May Now Be Included: In a somewhat surprising concession to employers, the new rules will allow non-discretionary bonuses, incentive payments and commissions to count for up to 10% of the minimum salary, provided these amounts are paid at least quarterly.
Details of the upcoming changes are outlined in my answer here. Further detail on the salary and duties tests are in my answer here.
Full details of the changes are covered in the United States Department of Labor's Wage and Hour Division's FAQ on the "Overtime Final Rule". I have reproduced the section on bonuses in full here:
NONDISCRETIONARY BONUSES AND INCENTIVE PAYMENTS
May employers use bonuses to satisfy part of the new standard salary level test?
Yes. The Department is changing the regulations to allow
nondiscretionary bonuses and incentive payments (including
commissions) to satisfy up to 10 percent of the standard salary test
requirement. Such bonuses include, for example, nondiscretionary
incentive bonuses tied to productivity or profitability (e.g. a bonus
based on the specified percentage of the profits generated by a
business in the prior quarter). The Department recognizes that some
businesses pay significantly larger bonuses; where larger bonuses are
paid, however, the amount attributable toward the EAP standard salary
level is capped at 10 percent of the required salary amount.
For employers to credit nondiscretionary bonuses and incentive
payments (including commissions) toward a portion of the standard
salary level test, such payments must be paid on a quarterly or more
frequent basis.
What's the difference between a discretionary bonus and a nondiscretionary bonus?
Nondiscretionary bonuses and incentive payments (including
commissions) are forms of compensation promised to employees to induce
them to work more efficiently or to remain with the company. Examples
include bonuses for meeting set production goals, retention bonuses,
and commission payments based on a fixed formula.
By contrast, discretionary bonuses are those for which the decision to
award the bonus and the payment amount is at the employer's sole
discretion and not in accordance with any preannounced standards. An
example would be an unannounced bonus or spontaneous reward for a
specific act.
May employers make a catch-up payment in the event that an employee doesn't receive enough in nondiscretionary bonuses and incentive payments (including commissions) in a given quarter to remain exempt?
Yes, if an employee does not earn enough in nondiscretionary bonuses
and incentive payments (including commissions) in a given quarter to
retain their exempt status the Department permits a "catch-up" payment
at the end of the quarter. The employer has one pay period to make up
for the shortfall (up to 10 percent of the standard salary level for
the preceding 13 week period). Any such catch-up payment will count
only toward the prior quarter's salary amount and not toward the
salary amount in the quarter in which it was paid. If the employer
chooses not to make the catch-up payment, the employee would be
entitled to overtime pay for any overtime hours worked during the
quarter.
Does the Final Rule change how employers may use bonuses to satisfy the salary level for highly compensated employees (HCEs)?
No, the Department has not made changes to how employers may use
bonuses to meet the salary level component of the HCE test. To claim
the HCE exemption under the Final Rule, employers must pay workers at
least the standard weekly salary level of $913 per week on a salary or
fee basis, while the remainder of the total annual compensation may
include commissions, nondiscretionary bonuses, and other
nondiscretionary compensation. Because employers may fulfill almost
two-thirds of the HCE total annual compensation requirement with
commissions, nondiscretionary bonuses, and other forms of
nondiscretionary deferred compensation, the Department determined that
it would not be appropriate to permit employers to also use
nondiscretionary bonuses and incentive payments to satisfy the
standard salary amount.
Source: Final Rule: Overtime, United States Department of Labor's Wage and Hour Division's, retrieved 2016-06-15.
edited Apr 13 '17 at 12:48
Community♦
1
answered Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
suggest improvements |Â
up vote
3
down vote
Until December 1st 2016, bonuses cannot be considered at all for the FLSA overtime exemption salary requirement.
Once the upcoming changes to the FLSA overtime rules come into effect on December 1st 2016, up to 10% of the minimum salary can be made up of nondiscretionary bonuses and/or commissions:
Bonuses and Commissions May Now Be Included: In a somewhat surprising concession to employers, the new rules will allow non-discretionary bonuses, incentive payments and commissions to count for up to 10% of the minimum salary, provided these amounts are paid at least quarterly.
Details of the upcoming changes are outlined in my answer here. Further detail on the salary and duties tests are in my answer here.
Full details of the changes are covered in the United States Department of Labor's Wage and Hour Division's FAQ on the "Overtime Final Rule". I have reproduced the section on bonuses in full here:
NONDISCRETIONARY BONUSES AND INCENTIVE PAYMENTS
May employers use bonuses to satisfy part of the new standard salary level test?
Yes. The Department is changing the regulations to allow
nondiscretionary bonuses and incentive payments (including
commissions) to satisfy up to 10 percent of the standard salary test
requirement. Such bonuses include, for example, nondiscretionary
incentive bonuses tied to productivity or profitability (e.g. a bonus
based on the specified percentage of the profits generated by a
business in the prior quarter). The Department recognizes that some
businesses pay significantly larger bonuses; where larger bonuses are
paid, however, the amount attributable toward the EAP standard salary
level is capped at 10 percent of the required salary amount.
For employers to credit nondiscretionary bonuses and incentive
payments (including commissions) toward a portion of the standard
salary level test, such payments must be paid on a quarterly or more
frequent basis.
What's the difference between a discretionary bonus and a nondiscretionary bonus?
Nondiscretionary bonuses and incentive payments (including
commissions) are forms of compensation promised to employees to induce
them to work more efficiently or to remain with the company. Examples
include bonuses for meeting set production goals, retention bonuses,
and commission payments based on a fixed formula.
By contrast, discretionary bonuses are those for which the decision to
award the bonus and the payment amount is at the employer's sole
discretion and not in accordance with any preannounced standards. An
example would be an unannounced bonus or spontaneous reward for a
specific act.
May employers make a catch-up payment in the event that an employee doesn't receive enough in nondiscretionary bonuses and incentive payments (including commissions) in a given quarter to remain exempt?
Yes, if an employee does not earn enough in nondiscretionary bonuses
and incentive payments (including commissions) in a given quarter to
retain their exempt status the Department permits a "catch-up" payment
at the end of the quarter. The employer has one pay period to make up
for the shortfall (up to 10 percent of the standard salary level for
the preceding 13 week period). Any such catch-up payment will count
only toward the prior quarter's salary amount and not toward the
salary amount in the quarter in which it was paid. If the employer
chooses not to make the catch-up payment, the employee would be
entitled to overtime pay for any overtime hours worked during the
quarter.
Does the Final Rule change how employers may use bonuses to satisfy the salary level for highly compensated employees (HCEs)?
No, the Department has not made changes to how employers may use
bonuses to meet the salary level component of the HCE test. To claim
the HCE exemption under the Final Rule, employers must pay workers at
least the standard weekly salary level of $913 per week on a salary or
fee basis, while the remainder of the total annual compensation may
include commissions, nondiscretionary bonuses, and other
nondiscretionary compensation. Because employers may fulfill almost
two-thirds of the HCE total annual compensation requirement with
commissions, nondiscretionary bonuses, and other forms of
nondiscretionary deferred compensation, the Department determined that
it would not be appropriate to permit employers to also use
nondiscretionary bonuses and incentive payments to satisfy the
standard salary amount.
Source: Final Rule: Overtime, United States Department of Labor's Wage and Hour Division's, retrieved 2016-06-15.
edited Apr 13 '17 at 12:48
Community♦
1
answered Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
suggest improvements |Â
up vote
3
down vote
up vote
3
down vote
Until December 1st 2016, bonuses cannot be considered at all for the FLSA overtime exemption salary requirement.
Once the upcoming changes to the FLSA overtime rules come into effect on December 1st 2016, up to 10% of the minimum salary can be made up of nondiscretionary bonuses and/or commissions:
Bonuses and Commissions May Now Be Included: In a somewhat surprising concession to employers, the new rules will allow non-discretionary bonuses, incentive payments and commissions to count for up to 10% of the minimum salary, provided these amounts are paid at least quarterly.
Details of the upcoming changes are outlined in my answer here. Further detail on the salary and duties tests are in my answer here.
Full details of the changes are covered in the United States Department of Labor's Wage and Hour Division's FAQ on the "Overtime Final Rule". I have reproduced the section on bonuses in full here:
NONDISCRETIONARY BONUSES AND INCENTIVE PAYMENTS
May employers use bonuses to satisfy part of the new standard salary level test?
Yes. The Department is changing the regulations to allow
nondiscretionary bonuses and incentive payments (including
commissions) to satisfy up to 10 percent of the standard salary test
requirement. Such bonuses include, for example, nondiscretionary
incentive bonuses tied to productivity or profitability (e.g. a bonus
based on the specified percentage of the profits generated by a
business in the prior quarter). The Department recognizes that some
businesses pay significantly larger bonuses; where larger bonuses are
paid, however, the amount attributable toward the EAP standard salary
level is capped at 10 percent of the required salary amount.
For employers to credit nondiscretionary bonuses and incentive
payments (including commissions) toward a portion of the standard
salary level test, such payments must be paid on a quarterly or more
frequent basis.
What's the difference between a discretionary bonus and a nondiscretionary bonus?
Nondiscretionary bonuses and incentive payments (including
commissions) are forms of compensation promised to employees to induce
them to work more efficiently or to remain with the company. Examples
include bonuses for meeting set production goals, retention bonuses,
and commission payments based on a fixed formula.
By contrast, discretionary bonuses are those for which the decision to
award the bonus and the payment amount is at the employer's sole
discretion and not in accordance with any preannounced standards. An
example would be an unannounced bonus or spontaneous reward for a
specific act.
May employers make a catch-up payment in the event that an employee doesn't receive enough in nondiscretionary bonuses and incentive payments (including commissions) in a given quarter to remain exempt?
Yes, if an employee does not earn enough in nondiscretionary bonuses
and incentive payments (including commissions) in a given quarter to
retain their exempt status the Department permits a "catch-up" payment
at the end of the quarter. The employer has one pay period to make up
for the shortfall (up to 10 percent of the standard salary level for
the preceding 13 week period). Any such catch-up payment will count
only toward the prior quarter's salary amount and not toward the
salary amount in the quarter in which it was paid. If the employer
chooses not to make the catch-up payment, the employee would be
entitled to overtime pay for any overtime hours worked during the
quarter.
Does the Final Rule change how employers may use bonuses to satisfy the salary level for highly compensated employees (HCEs)?
No, the Department has not made changes to how employers may use
bonuses to meet the salary level component of the HCE test. To claim
the HCE exemption under the Final Rule, employers must pay workers at
least the standard weekly salary level of $913 per week on a salary or
fee basis, while the remainder of the total annual compensation may
include commissions, nondiscretionary bonuses, and other
nondiscretionary compensation. Because employers may fulfill almost
two-thirds of the HCE total annual compensation requirement with
commissions, nondiscretionary bonuses, and other forms of
nondiscretionary deferred compensation, the Department determined that
it would not be appropriate to permit employers to also use
nondiscretionary bonuses and incentive payments to satisfy the
standard salary amount.
Source: Final Rule: Overtime, United States Department of Labor's Wage and Hour Division's, retrieved 2016-06-15.
edited Apr 13 '17 at 12:48
Community♦
1
answered Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
Until December 1st 2016, bonuses cannot be considered at all for the FLSA overtime exemption salary requirement.
Once the upcoming changes to the FLSA overtime rules come into effect on December 1st 2016, up to 10% of the minimum salary can be made up of nondiscretionary bonuses and/or commissions:
Bonuses and Commissions May Now Be Included: In a somewhat surprising concession to employers, the new rules will allow non-discretionary bonuses, incentive payments and commissions to count for up to 10% of the minimum salary, provided these amounts are paid at least quarterly.
Details of the upcoming changes are outlined in my answer here. Further detail on the salary and duties tests are in my answer here.
Full details of the changes are covered in the United States Department of Labor's Wage and Hour Division's FAQ on the "Overtime Final Rule". I have reproduced the section on bonuses in full here:
NONDISCRETIONARY BONUSES AND INCENTIVE PAYMENTS
May employers use bonuses to satisfy part of the new standard salary level test?
Yes. The Department is changing the regulations to allow
nondiscretionary bonuses and incentive payments (including
commissions) to satisfy up to 10 percent of the standard salary test
requirement. Such bonuses include, for example, nondiscretionary
incentive bonuses tied to productivity or profitability (e.g. a bonus
based on the specified percentage of the profits generated by a
business in the prior quarter). The Department recognizes that some
businesses pay significantly larger bonuses; where larger bonuses are
paid, however, the amount attributable toward the EAP standard salary
level is capped at 10 percent of the required salary amount.
For employers to credit nondiscretionary bonuses and incentive
payments (including commissions) toward a portion of the standard
salary level test, such payments must be paid on a quarterly or more
frequent basis.
What's the difference between a discretionary bonus and a nondiscretionary bonus?
Nondiscretionary bonuses and incentive payments (including
commissions) are forms of compensation promised to employees to induce
them to work more efficiently or to remain with the company. Examples
include bonuses for meeting set production goals, retention bonuses,
and commission payments based on a fixed formula.
By contrast, discretionary bonuses are those for which the decision to
award the bonus and the payment amount is at the employer's sole
discretion and not in accordance with any preannounced standards. An
example would be an unannounced bonus or spontaneous reward for a
specific act.
May employers make a catch-up payment in the event that an employee doesn't receive enough in nondiscretionary bonuses and incentive payments (including commissions) in a given quarter to remain exempt?
Yes, if an employee does not earn enough in nondiscretionary bonuses
and incentive payments (including commissions) in a given quarter to
retain their exempt status the Department permits a "catch-up" payment
at the end of the quarter. The employer has one pay period to make up
for the shortfall (up to 10 percent of the standard salary level for
the preceding 13 week period). Any such catch-up payment will count
only toward the prior quarter's salary amount and not toward the
salary amount in the quarter in which it was paid. If the employer
chooses not to make the catch-up payment, the employee would be
entitled to overtime pay for any overtime hours worked during the
quarter.
Does the Final Rule change how employers may use bonuses to satisfy the salary level for highly compensated employees (HCEs)?
No, the Department has not made changes to how employers may use
bonuses to meet the salary level component of the HCE test. To claim
the HCE exemption under the Final Rule, employers must pay workers at
least the standard weekly salary level of $913 per week on a salary or
fee basis, while the remainder of the total annual compensation may
include commissions, nondiscretionary bonuses, and other
nondiscretionary compensation. Because employers may fulfill almost
two-thirds of the HCE total annual compensation requirement with
commissions, nondiscretionary bonuses, and other forms of
nondiscretionary deferred compensation, the Department determined that
it would not be appropriate to permit employers to also use
nondiscretionary bonuses and incentive payments to satisfy the
standard salary amount.
Source: Final Rule: Overtime, United States Department of Labor's Wage and Hour Division's, retrieved 2016-06-15.
edited Apr 13 '17 at 12:48
Community♦
1
answered Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
edited Apr 13 '17 at 12:48
Community♦
1
edited Apr 13 '17 at 12:48
Community♦
1
edited Apr 13 '17 at 12:48
Community♦
1
1
answered Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
answered Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
answered Jun 16 '16 at 10:47
Lilienthal♦
53.9k36183218
53.9k36183218
suggest improvements |Â
suggest improvements |Â
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
StackExchange.ready(
function ()
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fworkplace.stackexchange.com%2fquestions%2f69875%2fare-bonuses-included-in-the-salary-base-requirement-for-flsa-overtime-exemption%23new-answer', 'question_page');
);
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
This question was created as my original answer on this question was answering the general case of bonuses instead of the OP's specific question. Note that this is not an off-topic legal question as questions that a HR professional (and consequently a manager or small-business owner) should know the answer to have been deemed on-topic here. This can be answered by simply stating the relevant regulations (as I have done), it doesn't require interpretation of the law for a specific situation
– Lilienthal♦
Jun 16 '16 at 10:50