Are employers allowed to impose bonus or incentive schemes on their employees?

In California, employers are allowed to impose bonus or incentive schemes on their employees. This is laid out in the California Labor Code, which states that employers can provide bonuses, incentives, and other forms of compensation in order to encourage employees to increase their productivity or meet their performance goals. Employers must ensure that their bonus or incentive schemes comply with all California labor laws, including minimum wage and overtime provisions, meal and rest break rules, and so on. Additionally, employers must outline the bonus or incentive scheme in an employment contract or policy document, clearly outlining the criteria necessary to be eligible for the bonus or incentive, and the amount of bonus or incentive that each employee is eligible to receive. The bonus or incentive must also be paid in a timely manner, and must be fair and consistent for all employees. Ultimately, employers are allowed to impose bonus or incentive schemes on their employees in California, provided that the scheme meets all legal requirements and does not discriminatorily award bonuses or incentives to certain employees.

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Are employers allowed to impose bonus or incentive schemes on their employees?

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