MACNY - Bonus for Perfect Attendance?

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Bonus for Perfect Attendance?

Question: In order to decrease absences and tardiness in our plant, we have decided to initiate a bonus program for those with perfect attendance. Employees must have no absences and not been tardy at any time in the month in order to be eligible for the bonus. Do you see any problems with this incentive?

Answer: This type of reward system has worked well in organizations, as long as employees are not coming to work sick (and passing it on to other employees) or injured in order to collect their bonus. Absences and tardiness that are part of FMLA, military leave, jury duty or Workers’ Compensation cannot be used when determining bonus eligibility. In addition, because the bonus is designed to encourage increased efforts on the part of employees, the bonus constitutes earnings that must be included in overtime-pay calculations.

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