TRUE/ FALSE A nondiscretionary bonus is one that is either known in advance or is set up as an inducemnet to achieve certain goals ? Solution True. A non-discretionary bonus or incentive payment is based on standards that have to be met in order to receive such payment. These requirements are determined at the outset of the payment period. Employees can reasonably expect to be paid the payment if the standards are met. This type of payment is made routinely—usually on a set schedule. They typically include things like payments for meeting production goals, profit numbers, etc. These types of payments must be included in the regular rate of pay and calculation of overtime..

1. TRUE/ FALSE A nondiscretionary bonus is one that is either known in advance or is set up as an
inducemnet to achieve certain goals ?
Solution
True.
A non-discretionary bonus or incentive payment is based on standards that have to be met in
order to receive such payment. These requirements are determined at the outset of the payment
period. Employees can reasonably expect to be paid the payment if the standards are met. This
type of payment is made routinely—usually on a set schedule. They typically include things like
payments for meeting production goals, profit numbers, etc. These types of payments must be
included in the regular rate of pay and calculation of overtime.