What are the laws regarding the payment of bonuses?
In Delaware, employers are allowed to pay bonuses to their employees for various reasons, such as length of service, performance, or a special achievement. However, any bonus paid to an employee must comply with Delaware Wage and Hour Law, which outlines the requirements that must be met. For example, employers are not allowed to pay bonuses that do not meet the minimum wage requirement. The minimum wage in Delaware currently stands at $9.25 per hour and employers are not permitted to pay any bonus that is less than this amount. Furthermore, bonuses must be paid in the same pay period as when they were earned, or else the employer may risk being found in violation of Wage and Hour Law. Employers must also ensure that bonuses are not used to encourage employees to work longer hours or accept less than minimum wage. In addition, employers should not discriminate when offering bonuses, and must ensure that they are distributed equally among employees who are similarly situated. Finally, employers are required to keep accurate records of all bonus payments made to employees. This helps ensure that Delaware Wage and Hour Law is being complied with, and also serves as a reference if an employee seeks to dispute a bonus payment.
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