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Can we offer exempts extra vacation bonuses?

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in Compensation and Benefits,Human Resources

Q. Can we give an exempt employee a bonus of extra vacation days in addition to the standard accrued time off outlined in our employee handbook?

A. Yes, you can do that, but it might be tricky to manage the process. For example, if you give one employee extra vacation days as a bonus, another employee a cash bonus and a third employee no bonus at all, you might be vulnerable to a claim of disparate treatment.

Therefore, you should think through carefully how you would administer this bonus policy. Ask: Under what circumstances would you award vacation days as a bonus? Would that be the only form of bonus you might award?

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