Philadelphia employment lawyers at Sidney L. Gold & Associates work diligently to protect the compensation and bonuses of their clients. A bonus can be given in addition to an employee’s salary, or it can encompass a large part of their total compensation package. Discretionary, guaranteed, and retention bonuses are the three types of bonuses used by employers to encourage workers to achieve goals, or to enhance contracts and incentives when hiring. Our employment lawyers have extensive experience writing and negotiating these offers, and in mediating, arbitrating, and litigating disputes that can arise.
A discretionary bonus is frequently based on the performance of either the employee or the business. This type of bonus is given as compensation in addition to an employee’s salary and is centered on their personal performance on the job, their department’s performance for the company, or the general performance of the company as a whole. The most common type of discretionary bonuses is based on personal performance goals, sales goals, business growth goals, and for Earnings Before Interest, Depreciation, Taxes, and Amortization (EBIDTA).
Guaranteed bonuses are those that are written into a contract and promised as an incentive in legally binding employment contracts, employment agreements, and offer letters. We work with clients in the drafting of these documents to ensure that they receive the compensation that they are legally entitled to receive, even if they are terminated. Employees hired “at will” are also entitled to receive a bonus that was guaranteed at the time of hiring even if there is no written contract.
A retention bonus is commonly offered to employees when a company is facing bankruptcy, a change in control, sale, or acquisition. The bonus is used as an incentive for employees to remain on the job throughout a certain period of restructuring.
For more information on business bonuses, contact Philadelphia employment law firm of Sidney L. Gold & Associates at 215-569-1999, or complete our online contact form.