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Q&A: Year-End Bonuses

Wednesday, November 15, 2017   (0 Comments)
Posted by: Allison Hudson
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Question

Our owner has always distributed year-end bonuses to his employees based on how he “feels” about their performance. It’s his favorite time of year but I worry that he’s playing favorites. Should I be concerned?

Answer

In a word, yes. Many business owners view distributing discretionary bonuses as a way of showing appreciation for their employees. The problem is these bonuses are often based on subjective “feelings” which can often be found to be discriminatory.  Instead, encourage your owner to stick to objective criteria for bonuses and to write a personal thank-you-note to his favorite employees instead.


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