Are employers obligated to pay bonuses to employees?

In Michigan, the answer to the question of whether employers are obligated to pay bonuses to employees is it depends. While some employers may choose to give bonuses to their employees, there is no legal obligation to do so. The Michigan Employment Security Act of 1936 sets out the terms of employment, and there is no provision that requires employers to give bonuses. However, an employer may offer a bonus as part of an employment contract and, if so, the employer will be obligated to pay it according to the terms of the agreement. In addition, when a bonus is part of an incentive plan, employers may be required to pay them if those bonuses are in the form of wages. This includes commissions, which are payments based on sales and production achievements. Overall, the amount of bonus an employer is obligated to pay an employee depends on whether it is part of an agreement or part of an incentive plan. There is no general law that requires bonuses in Michigan, but there may be specific requirements if one is part of an agreement or an incentive plan.

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Are employers obligated to pay bonuses to employees?

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