Adopting Bonus Plans That Comply With The FLSA

Day, Frank - 300dpi
Frank Day

Recruiting and retaining employees has become a bigger challenge for many employers as the already robust U.S. economy has continued gaining steam. Unemployment rates have reached their lowest levels since the tech boom of 2000, and competition for workers has increased significantly in many sectors. To respond to the growing demand for talent, many companies have recently adopted bonus plans to reward employees for their job performance and loyalty. While these plans are well intended, they can also create liability under the Fair Labor Standards Act (“FLSA”) when not properly implemented. Below is a brief summary of factors employers should take into account when adopting bonus plans to ensure that they are administered in accordance with the FLSA. Continue reading