Are employers obligated to pay bonuses to employees?

In short, it depends. In California, employers are generally not required to pay bonuses to employees, although there may be certain situations in which they are legally obligated to do so. For example, if an employment contract specifically states that an employee will receive a bonus for certain work, then the employer is contractually obligated to pay out this bonus. Additionally, the California Labor Code requires employers to provide additional pay (in the form of a bonus) to employees who work more than eight hours in a given day. Further, it may be required in some industries that employers offer bonuses to employees. For instance, California law dictates that commissions, bonuses, and other payments are to be included under the definition of “wages” for certain professions, such as executives and salesperson. In these cases, the employer may be legally obligated to pay out the bonus. So, employers in California are not typically obligated to pay bonuses to employees. However, in certain specific circumstances, such as those outlined above, employers may be legally obligated to do so. Therefore, if you are an employee who is expecting a bonus, it is important to verify whether or not your employer is required to pay it.

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Are employers obligated to pay bonuses to employees?

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