What are the laws regarding the payment of bonuses?
In Washington state, employers are required to pay bonuses in accordance with state wage and hour laws. Washington law states that employers must pay bonus wages in full on or before the date of payment specified in a written agreement between the employer and the employee. For bonus payments, the employer is allowed to deduct certain taxes from the bonus, such as Social Security and Medicare, but must still pay the total bonus amount to the employee. If an employee leaves the company before the bonus payment is due, the employer must still pay the bonus wages to the employee or their estate. Additionally, employers must pay bonuses at least annually and can only pay them once a year. Bonuses also cannot be used as a substitute for wages of regular pay. If an employee works for overtime, the employer must pay an additional bonus wage on top of the regular wage. Employers may also offer bonuses as an incentive for their employees to reach goals or meet expectations. If an employee believes they have not been paid the appropriate wage or bonus wages, they can file a wage and hour claim with the Washington Department of Labor & Industries. The Labor & Industries department can then investigate the claim and take appropriate action if they find a violation of the law.
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