It feels great to earn a bonus. It means someone noticed your hard work and decided you deserved extra. But what if those same people chose not to give you a bonus, not because of your performance, but because of your race, gender or age? That’s when “discretion” becomes discrimination.
What is a discretionary bonus?
Discretionary bonuses are payments made at the employer’s discretion, often based on individual or team performance. They differ from other types of bonuses, such as signing bonuses or profit-sharing bonuses, which are typically tied to specific metrics or company performance.
Here are some examples of discretionary bonuses:
- Holiday bonuses
- Spot bonuses for good work
- Bonuses for personal milestones, like having a baby or getting married
- Bonuses based on overall performance reviews
These bonuses are meant to motivate and reward employees. However, their subjective nature can lead to bias.
How bias affects bonus decisions
Bias can creep into bonus decisions in various ways. Managers might show preference to some employees because they have personal connections with them. They might also treat others unfairly because of their race, gender or other protected traits. This can result in:
- Bonuses not being shared equally
- Employees feeling less motivated
- Legal problems for the company
When employers give bonuses unfairly, it hurts employees’ trust and drive. It can also create a hostile work environment where employees feel undervalued and mistreated.
Recognizing and challenging discrimination
If you think your manager or employer unfairly denied or reduced your bonus, it’s important to know your rights. Both Michigan and federal laws protect employees from discrimination at work, including decisions about bonuses.
Be sure you keep records of everything. Save emails, performance reviews and any proof of bias. You may bring the issue to your boss or HR, but if that doesn’t help, you can file a complaint with the Michigan Department of Civil Rights, which investigates discrimination claims. You can also talk to an employment lawyer to help you understand your rights and potential legal remedies available.