Are bonuses and commissions paid to employees on FMLA leave?

Quick answer

Whether an employee on FMLA leave is entitled to a bonus or commission depends on what other employees using similar types of leave receive. If employees on non-FMLA leave (such as PTO) would receive the bonus or commission, then employees on FMLA leave must also receive it. If a bonus is tied to a specific achievement the employee did not meet, they are generally not entitled to it — unless employees on other types of leave would still receive it.

This article is for general informational purposes only and is not intended to be legal advice.

• Employees who have used or are planning to use FMLA leave
• HR teams and employers calculating pay obligations after an employee returns from FMLA leave
• Applies to both bonuses and commissions; does not cover tax implications or pay owed upon termination

1. Identify whether the bonus is discretionary (awarded at employer's discretion, not guaranteed) or nondiscretionary (incentive-based, outlined in an employment contract or handbook).
2. Check whether employees on comparable non-FMLA leave (such as PTO) received the bonus. If yes, the employee on FMLA leave must also receive it.
3. If the bonus is tied to a specific achievement (like hours worked), check whether the employee met the criteria. If they did not meet the criteria and employees on non-FMLA leave would also not receive it in that case, the employee is generally not entitled to the bonus.
4. If the bonus would be paid to employees on non-FMLA leave regardless of the achievement, it must be paid to the FMLA employee as well.

To determine if a commission is owed after FMLA leave:

1. Commissions follow the same rule: check whether employees on comparable non-FMLA leave received their commission.
2. If yes, the employee on FMLA leave must receive it too.

Employee believes they should have received a bonus but didn't: Apply the comparison test — check what employees on similar non-FMLA leave (PTO, etc.) received. The governing rule is 29 CFR 825.215(c)(2) and DOL FMLA Advisor guidance on Equivalent Position and Benefits.

Unsure about state leave rules for bonuses and commissions: Many state leaves follow the same rules as FMLA. For paid state leave programs (and the District of Columbia), bonuses and commissions are considered wages and must be reported when determining eligibility and calculating payment amounts. Employees should consult their HR team for company-specific policies and how state or local laws may apply.

If none of these apply, contact Tilt support for a leave pay review.

• This article covers FMLA only. It does not address tax implications of bonus/commission payments, pay owed upon termination, or any non-leave-related compensation issues.
• Dozens of paid sick/safe time laws typically do not have guidance on bonuses and commissions. Employers should consult legal counsel for those situations.
• Tilt will include commissions and bonuses in a leave plan's pay calculation only if: (1) the company's policies include these forms of compensation, and (2) the company has configured Tilt to represent them. If not configured, bonuses and commissions will not appear in the Tilt pay calculation or leave map.
• Tilt's estimated pay calculations show gross amounts. Actual payments will differ once taxes are applied.

• Does FMLA affect my bonus?
• Can my employer deny my commission because I took FMLA leave?
• What counts as equivalent pay under FMLA?
• How does Tilt show bonuses and commissions in a leave plan?
• Do state leave laws have the same bonus/commission rules as FMLA?
• Are commissions considered wages for state paid leave programs?