Is a bonus a benefit under FMLA?

Jayhawk

Our company has a quarterly bonus program where it is based on profits. If we hit our goal, then every employee who is employed at the end of that quarter and has been here 90 days, receives a certain amount. There is also an attendance requirement - any hourly employee who has more than 8 hours of unpaid time off in that quarter (they have used up all PTO/Vacation time and still needed time off) will have their bonus reduced by a certain percentage. My question is if someone is taking time off unpaid, but is protected by FMLA, can we deny that employee their bonus? FMLA says the employer cannot take away any benefits, but is a bonus a benefit or just an incentive to make quarterly goals? Help!!!

LindaS

If the bonus is based on profit, and not on individual production, an employee taking time off under FMLA should receive this bonus the same as if they were working. The attendance requirement of the bonus should not include FMLA qualifying absences.

skyrocket

I agree with LindaS.

psrcello

Check Section 825.215 (c) (2) - this refers directly to two different kinds of bonuses. The first would be an attendance or safety bonus, which "do not require performance by the employee but rather contemplate the absence of occurrences". Employees who otherwise meet all the criteria under these types of bonuses may not be disqualified for taking FMLA leave.

However, the second type of bonus is a "production" bonus, which does require performace by the employee. If an employee takes FMLA leave during the period of time on which the bonus is computed, the employee is "entitled to the same consideration for the bonus as other employees on paid or unpaid leave (as appropriate)."

We pay a quarterly productivity bonus to a number of our employees (those who work on our 24/7 continuous schedule.) There is an attendance component involved in qualifying an employee for the bonus. We treat FMLA (which is unpaid leave) the same way we would treat any other unpaid absence during the quarter - miss more than 24 hours total during the quarter, and no bonus.

Rockie

If the employee qualifies for the bonus independent of the FMLA, they would be eligible. Employee cannot be "punished" in any way for taking FMLA.

scottorr

You may want to change your policy from saying employed to saying active at the time of pay out if your bonus is tied to performance.