Policy Regarding recognition gifts from the company

Roman

We are a nonprofit healthcare/service organization with a limited budget. I have been asked to create a policy defining what the limits are for the provision of holiday and recognition gifts. I am wondering if anyone has such a policy that defines what is given and how much may be spent on Christmas gifts, annual service awards or other motivational sources not including things such as incentives for sales people.
Even knowing you don't have a policy and don't intend to create one would be helpful.

HRLASS

You have to watch both FLSA and IRS regulations on this. We were recently told that even $25 gift certificates may be included as taxable income to employees. We have Employee Recognition Awards which can be made at any time to any employee, merit awards annually, service awards (usually clock or some such item - not dollars) at 5yrs-10yrs-etc., and use gift cards as employee rewards for special projects or smaller ones for holiday contests. Each department has a budget for such awards and can split it as they see fit; suggestions/requests from supervisors, approval/allocation by department head. Watch performance awards either uniformly given or tied to hours worked or units produced; such may have FLSA requirements to amend/increase regular pay rate and overtime rates.

DeidreFR5

We ask this question every year to our state employer group and lawyers. It is the mirkiest area out there. We have been told we are ok with "token" gifts (clocks, etc.) that have no "cash value" to the receipient and are not given as payment (not an incentive but years of service). We give $25 grocery cards at Thanksgiving, which fall under the cash value, but I refuse to handle any more frozen gobblers (personally handed out 600 one year, I was a little less than the friendly HR person by the end).