Bonus Agreement
(NC)

Summary

This template is a bonus agreement for use by a private employer in North Carolina. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template provides a roadmap to follow when determining the criteria associated with the bonus and other requirements related to bonus agreements. This template is intended for private employers. It is based on federal law and North Carolina law. In North Carolina, wages based upon bonuses, commissions, or other forms of calculation may be paid as infrequently as annually if prescribed in advance." N.C. Gen. Stat. § 95-25.6. However, upon termination, wages based on bonuses, commissions or other forms of calculation shall be paid on the first regular payday after the amount becomes calculable when a separation occurs. Such wages may not be forfeited unless the employee has been notified in accordance with the employer's policy or practice which results in forfeiture. See N.C. Gen. Stat. § 95-25.13. For additional information on bonus agreement drafting and design, see Incentive Bonus Agreement Design, Bonus Agreements: Key Drafting Tips, and Incentive Bonus Agreement Design. For other types of bonus agreement templates, see Sign-On Bonus Agreement, Long-Term Incentive Cash Bonus Agreement, and Short-Term Incentive Cash Bonus Agreement.