Bonus Policies Explained: How Employers Can Avoid Costly Disputes – Employment Edge with Liz

Elizabeth Schlissel , Partner in the Labor & Employment Practice Group at Falcon Rappaport & Berkman LLP, discusses why clear, written bonus policies and agreements are essential for employers. Properly outlining when bonuses are earned, paid, and handled upon employee separation can help prevent disputes and protect your business.

Employment Edge with Liz is Falcon Rappaport & Berkman’s video web series hosted by Elizabeth Schlissel, Chair of the firm’s Labor & Employment Practice Group. Through the series, Liz provides timely, practical commentary on the labor and employment issues shaping today’s workplace, helping employers better understand legal developments and policy considerations. Episodes have covered a range of key topics, including employees leaving companies, employee classification, bonus policies, fixed leave versus unlimited PTO, and AI in the workplace.

Transcript:

**This transcript has been prepared automatically by AI and may contain inaccuracies**

Liz Schlissel:

Welcome to the Employment Edge with Liz. Bonuses is a topic that both employees and employers like to discuss.

To avoid a potential conflict about bonuses, employers should have written bonus policies and or a written bonus agreement that’s either a standalone agreement or part of a larger employment agreement with their employees. Having these type of written policies and or agreements in place help avoid disputes down the line.

These policies should be clear and state when an employee earns a bonus, when an employer has to pay the bonus and what happens if the employee separates from the company before the bonus is paid.

If you have any questions regarding paying bonuses or drafting a bonus policy, please contact your employment attorneys at Falcon Rappaport & Berkman.