Are employers obligated to pay bonuses to employees?

In Washington, employers are not obligated to pay bonuses to employees. Bonuses may be offered at the employer’s discretion. Bonuses are payments an employer makes to reward or motivate employees besides their regular wages or salaries. Bonuses can be offered in a variety of forms, such as cash payments, stock options, trips, or other items of value. Bonuses may be offered for a variety of reasons, such as meeting certain performance goals, celebrating company milestones, or as a reward for longevity. However, an employer is only obligated to pay a bonus if it is promised in an employment contract. The promise must be clear, definite, and specific in order for an employee to be entitled to a bonus. If the bonus is not guaranteed in a contract, the employer is under no obligation to pay it. Employers may also choose to revoke or modify a bonus agreement in certain circumstances. In Washington, an employer is not required to pay any bonuses unless the employee has an enforceable contract that requires the bonus payment.

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