Fair Labor Standards Act (FLSA): Federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in government
Internal Revenue Code (IRC): Federal tax regulations governing the treatment of bonus compensation, including tax withholding requirements and classification of supplemental wages
Employee Retirement Income Security Act (ERISA): Federal law governing employee benefit plans and their impact on bonus structures and deferred compensation
Equal Pay Act: Federal law requiring equal pay for equal work, ensuring bonus structures do not discriminate based on gender
Title VII of the Civil Rights Act: Federal law prohibiting discrimination in compensation based on race, color, religion, sex, or national origin
IRS Supplemental Wage Regulations: Specific IRS rules for handling tax withholding on bonus payments, including Social Security and Medicare contributions
State Wage and Hour Laws: State-specific regulations governing wage payment, timing of bonus payments, and earned compensation requirements
At-Will Employment Doctrine: Legal principle affecting how bonus agreements interact with employment termination rights and obligations
Performance Metrics Documentation: Legal requirements for clearly defining and documenting performance goals, metrics, and calculation methodologies for bonus determination
Clawback Provisions: Legal framework for implementing and enforcing bonus repayment terms under specific circumstances
