By Beth Ann Lennon On January 7, 2020, the U.S. Department of Labor (“DOL”) issued a new Opinion Letter on “nondiscretionary” bonuses. When a bonus is offered to employees “to induce them to remain” with the company, the DOL considers the bonus to be “nondiscretionary.” Nondiscretionary bonuses “must be included in the regular rate of […]
Tag: bonus
Late Limit on Bonus Plan Has No Effect
By Bill Wright The 8th Circuit Court of Appeals recently offered a refresher course on contract formation, as applied to employee bonus plans. The employer promised substantial bonuses, payable in five years, provided the eligible at-will managers were still employed. A couple of years later, the employer saw that the bonuses were going to be […]