FMLA AFFECT BONUS?
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Our employees can receive up to 10% of their quarterly earnings each quarter as a bonus. The bonus is based upon attitude, timeliness, teaming and effectiveness. Being here and doing the work is a major part of all this criteria. Generally, if an employee is absent and has no PTO available, their bonus is docked.
Our FMLA policy requires employees to use their PTO before going on unpaid leave.
My question is can we still dock employees on their bonus when out on FMLA unpaid leave?
Our FMLA policy requires employees to use their PTO before going on unpaid leave.
My question is can we still dock employees on their bonus when out on FMLA unpaid leave?
Comments
"Bonuses for perfect attendance and safety do not require performance by the employee but rather contemplate the absences of occurrences. To the extent an employee who takes FMLA leave has met all requirements for either or both of these bonuses before FMLA leave began, the employee is entitled to continue this entitlement upon return from FMLA leave; i.e., the employee may not be disqualified for the bonuses for the taking of FMLA leave. A monthly production bonus, however, does require the employee's performance. If the employee is on FMLA leave during any part of the period for which this bonus is computed, the employee is entitled to the same consideration for the bonus as other employees on paid or unpaid leave as appropriate."
If any part of your bonus requires performance by the worker and the FMLA-protected absences removes the opportunity for the worker to perform, you would have an option to reduce, prorate, or otherwise withhold the bonus because of the absense of production/performance information, as long as all other non-FMLA LOA (paid or unpaid) are treated similarly. Of course, the protected absence cannot be used to penalize the worker if he/she otherwise satisfied bonus criteria prior to LOA and no performance by the worker was required and missing because of the absence.
best wishes.
I think I must have missed something here....
You are correct, bonuses based on production, or earnings woud be docked because they haven't produced or earned them.
Do not count the FML absences against the attendance policy, and use the available earnings when calculating based on the remaining factors.
The other type of bonus, that has nothing to do with a quantification of output and relies simply on the employee's presence in the workplace, cannot be reduced because the FMLA-protected absence must be treated (in this instance) as if the employee was not absent. In other words, all the employees had to do to get this bonus was to show up for work and not have an accident, have perfect attendance, etc. The FMLA-protected absence cannot be counted as a negative in this type of instance.
Does that make more sense? A little clearer maybe?