What are the laws governing the payment of employee bonuses?

The District of Columbia’s laws governing the payment of employee bonuses are outlined in the Wage Payment and Collection Law. This law requires employers to pay all earned bonuses in a timely and accurate manner. Employers must also provide employees with a written description of the terms and conditions of the bonus, including payment schedule and any qualifications that must be met in order to receive the bonus. The law also requires employers to pay bonuses no later than one pay period after the completion of the requirements, such as the end of an employment period or completion of a task. The Wage Payment and Collection Law also requires employers to pay bonuses in the same form of payment that they receive their wages, if the employee has previously agreed to accept the bonus in that form. For example, if the employee is typically paid in cash, the bonus must also be paid in cash. If the employee is typically paid with a check, the bonus must also be paid with a check. Furthermore, employers may not require employees to sign an agreement waiving their right to payment of the bonus or take any other action to limit or prevent the employee from claiming the bonus. Additionally, employers cannot deduct any amount from the bonus payment as a penalty or disciplinary action. Lastly, the law requires employers to keep records of all bonuses paid to employees, including payment date, payment amount, and any other conditions or qualifications associated with the bonus. These records must be retained for at least 3 years, and must be available for inspection and review at the employer’s premises.

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What are the laws governing the payment of employee bonuses?

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