HR Chat: Bonus Plan

We are a company with a five-person sales team and would like to introduce a sales competition that rewards employees with gifts instead of cash incentives. As we plan this program, we want to ensure it is implemented in a compliant manner. Specifically, do we need to require an addendum to employees’ hiring agreements, and should these gifts be reported as part of their compensation?

When developing a bonus plan, whether it involves financial compensation or non-cash gifts, it’s important to consult with our team of attorneys. We can assist in drafting a sales incentive or bonus policy tailored to your organization, helping ensure the program is structured and administered in a compliant manner for your employees.