Fighting For
Employee And Union Rights
Fighting For
Employee And Union Rights

Year-end bonuses and performance incentives

On Behalf of | Feb 21, 2024 | Employment Law

Bonuses can be a valuable part of an employee’s income potentially making or breaking their family budget or jeopardizing planned elective purchases. However, the excitement of getting a bonus regularly can quickly be flipped upside-down by an employer who decides not to honor their bonus policies.. While not all bonuses are enforceable, some are and may require prompt legal assistance.

Michigan laws require employers to provide bonuses that are offered in a written contract, agreement, or policy

According to state laws, bonuses are fringe benefits, not guaranteed wages. An employer can choose to offer year-end bonuses or not. Regarding bonuses tied to performance, employers can limit payment on employees or the employer meeting certain requirements.

Sometimes, the criteria for achieving these incentives are not clear, or the goals may seem unreachable.

These situations can be stressful, especially if your financial planning depends on that extra income. Be proactive in seeking clarity on how your employer measures performance. Further, keeping your own records to track fulfilment can help ensure there’s no confusion about your performance.

Should I play the waiting game?

Even if you meet all the criteria for a bonus, there can be payment delays.

These delays can stem from issues outside your control, like administrative issues, cash flow problems within the company or poor communication.

However, while it’s important to be patient, it can also be crucial to be assertive. If you believe there has been an unreasonable delay, speak up to your manager or HR.

Securing your bonuses

End-of-year bonuses and performance incentives are more than just extra money; they recognize your hard work.

Review your company’s policies and the specifics of your employment agreement to ensure you receive what you have earned. When in doubt, you can seek professional guidance to clear up any concerns. By staying informed and proactive, you can overcome the challenges and enjoy the rewards you have earned.