3.5.

1 LUM increase every year, it is viewed as less of an entitlement than merit

P SUM pay. Lump-sum bonuses can be considerably less expensive than merit
BONUSES pay in the long run.
Ba Bonuses identify an individual employee’s performance and are
se typically made on a one-time basis to determine extraordinary
d contributions and superior accomplishments. For non-exempt
on employees, bonuses may be considered discretionary. Discretionary
em payments do not affect overtime pay of non-exempt employees.
plo Under the Fair Labour Standards Act (FLSA), for a payment to be
ye considered discretionary, both the decision to make the payment
e and the determination of the payment amount must be in the
or employer’s sole discretion. Furthermore, the employer must retain
co discretion regarding the payment of the bonus until the end, or near
mp the end, of the period that it covers. Lump-sum bonuses are earned
an at the end of a specified time period, such as monthly, quarterly, or
y annually, when a salesperson achieves a specific level of sales or
pe sales quota.
rfo
rm 3.5.2 INDIVIDUAL SPOT AWARDS
an
Spot Awards are designed to recognize special contributions, as
ce,
they occur, for a specific project or task. Spot Awards are normally
em
for a special contribution accomplished over a relatively short time
plo
period. A Spot Award lets employees know that someone has
ye
noticed their noteworthy contribution.
es
rec Individual employees may be nominated for a Spot Award based on
eiv one or more of the established performance standards.
e Performance standards eligible for this award include:
an  Exceptional Performance: Demonstrated and sustained
en exceptional performance that consistently exceeds goals and
d- work expectations in quantity and/or quality.
of-
 Creativity: One-time innovation or creation that results in
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