What are the laws regarding the payment of bonuses?

In Maryland, employers must comply with federal and state laws when it comes to the payment of bonuses. The Fair Labor Standards Act (FLSA) establishes the basic requirements for payment of bonuses. According to the FLSA, an employer must pay its employees a minimum wage of at least $7.25 per hour and must also pay any bonus earned by the employee within a “reasonable” period of time. In addition, the Maryland Wage Payment and Collection Law requires employers to pay an employee any bonus due within six business days of the end of the pay period when the bonus was earned. The law also states that if the bonus is not paid within the prescribed amount of time, the employer must pay an additional amount of bonus equal to six percent of the employee’s bonus for each business day that it is late. Finally, employers in Maryland have an obligation to provide accurate information to employees about their bonuses. This includes informing employees when they are eligible for a bonus, how the bonus is calculated, and when they can expect to receive payment. Employers must keep records of all bonuses paid and provide employees with a payroll stub containing all relevant bonus information.

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What are the laws regarding the payment of bonuses?

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