Collective Bargaining Agreement: Discretionary Bonus Clause | Practical Law
A Standard Clause that can be included in a collective bargaining agreement (CBA) to confirm that an employer retains sole discretion over the timing and amounts of, and reasons for, bonuses paid to employees during the CBA's term. It is based on the National Labor Relations Act (NLRA) with consideration of the Fair Labor Standards Act (FLSA), but also may be used by private sector employers subject to the Railway Labor Act (RLA) or public sector employers. This Standard Clause has integrated drafting notes with important explanations and negotiating tips.