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Working Moms
Maternity leave and incentive pay
As part of my hire package, I was told that I could expect an annual bonus. And depending on performance and my department's performance, it could be X percentage of my pay. I received the bonus this year which was really nice (especially since my last firm gave a holiday bonus of like $200... pretty lame).
Since our fiscal year ends in October, and my due date is Nov 2. I'm thinking that my maternity leave should not effect my bonus, since my performance would be for probably a complete year. Anyone with experience here? I think have to figure out a way to make sure I get my performance review prior to my leave. Usually they are scheduled in November.
HR pros? Would my maternity leave effect for the following year's bonus since my performance would be lower because I'm out for 10 weeks?
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Re: Maternity leave and incentive pay
I think idividual employers and specifically your company's bonus policy and/or your contract is going to determine your eligibility for bonus and at what percentage.
However, I know at my company my variable pay (which is based on our company performance and my performance review) was NOT prorated due to the 8 week medical leave and 4 weeks of FMLA leave I took when DD was born last year.
We operate on a Jan-Dec. performance year and I was out the end of May-Mid September using 4 weeks of vacation in addition to the Medical and FMLA time.
Generally, the rule is that protected leave should not impact pay/benefits, including bonus. There are some exceptions, and I agree with others that depending on the type of bonus it may not fall under these rules. Definitely check with your corporate HR or Compensation groups, or do some reasearch on your intranet or review your handbook for the policy.
They way it works at our company (S&P 500), the first 90 days of any leave (12 weeks) do not impact eligibility for bonus/stock options. However, if an employee takes additional leave beyond 12 weeks, the bonus/stock grant will be prorated beginning from day 91 until they return.
Will baby #3 be another girl?
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And also--our company does not pay out bonuses until around 6 weeks after the end of the FY (need board approval). When is your bonus typically paid out? Is there a gap?
I would not think your 10 week leave in FY 2014 would not matter, unless your company specifically excludes or prorates due to leave. Especially if it is "job protected" leave, such as state leave or FMLA.
Will baby #3 be another girl?
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Good to know. I will need to check our policies and talk to my manager. Our incentive pay will be paid out the second pay period in Dec and depending on when the baby comes, I may still be on STDI or I may be on vacation.
I work for a really large company that outsources benefits, so these things get confusing. But I'm glad to know that with many people, bonuses are protected while on medical leave.
We have a standard year - Jan -Dec, with promotions are announced in Dec. and bonus for the prior year and current year salary announced in Jan and paid in Feb. I was out on maternity leave mid Dec - mid March (over 12 weeks). I actually received a promotion and my bonus / salary communication while on leave, which was really nice! The following year, my bonus was not impacted at all by me being out the first three months. It was higher than the previous year, so in my mind that is good. Who knows, it may have been higher if I had been working those three months because our bonus is based on firm, team and individual performance. It was not negatively impacted by leave, and I agree with pp, I don't think they can legally lower pay due to maternity leave. That being said, I had it in my mind that my bonus should at least stay flat from the prior year. I would have asked questions if it was lower.