Amount/Frequency of Bonuses and Source of Funds
- An employee may receive more than one bonus in a fiscal year; however, the total amount of the bonuses received for the fiscal year may not exceed $3,000.
- State, federal and other sources of revenue may be used to award bonuses.
- Agencies using federal funds for bonuses must show that the use of these funds is in compliance with federal law.
- The agency director is the final authority responsible for approving employee bonuses.
- All permanent and probationary employees in full-time equivalent positions are eligible to receive a bonus under these provisions.
- Agency directors are not eligible to receive bonuses.
- Employees earning $100,000 or more are not eligible to receive bonuses.
- Temporary grant and time-limited project employees are eligible to receive bonuses within the Appropriations Act guidelines for employee bonuses. The bonuses must be funded by the grant or time-limited project.
Bonuses may be awarded to recognize the accomplishments and contributions of individual employees. Examples of appropriate reasons for awarding bonuses are:
- Contributions to increased organizational productivity;
- Development and/or implementation of improved work processes;
- Exceptional customer service;
- Realized cost savings; or
- Other specific contributions to the success of the organization.
Documentation and Reporting Requirements
- Agencies must develop a plan for awarding bonuses to employees and keep the plan on file at the agency.
- Agencies must also make the plan available that explains the criteria for awarding bonuses available to employees.
- Agencies should submit plans to the Division of State Human Resources (DSHR) for information.
- Agencies must document the reason for any bonus payments awarded.
- Agencies must report the following information to DSHR regarding the payment of a bonus to any employee:
- Personnel Number
- Date Awarded
- Source of funds
- Reason for Awarding Bonus
- Amount of Bonus
Supplemental Salary: any compensation, excluding travel reimbursement, from an affiliated public charity, foundation, clinical faculty practice plan, or other public source or any supplement from a private source.
The agency head or designated official within the agency must approve the receipt of supplements. Supplements paid to agency heads must be approved by the appropriate governing body. For additional information refer to Proviso 93.3 of the Appropriations Act.
Agencies must report to the Division of State Human Resources by August 31 of each year, any supplements received by employees during the preceding fiscal year. Agencies may use the Supplemental Salary Reporting Form to report supplements for their employees. Otherwise, reports of salary supplements must include the employee′s name and the amount, source, and condition of the supplement.