On January 3, 2016, Newman, a dedicated, long term postal work, delivered 30 let

Question

On January 3, 2016, Newman, a dedicated, long term postal work, delivered 30 letters in and 8 hour period. Todd Gak, Newman's supervisor, was so impressed that on January 4, 2016, he made the following statement: "Newman, that's awesome. I have the authority to grant bonuses to my employees for their superior productivity. You will get an extra $50 in your next paycheck. And, if you ever deliver more than 30 letters in an 8 hour period within the next two years, starting today, you will receive $100 more." Excitedly, New man responded, "I'll take yo up on that." Expecting to see and extra $50 in his paycheck, Newman purchased a non-returnable cabana swimsuit from Ruby's Antique Boutique for $50 on January 6, 2016. On February 17, 2016, Newman delivered 31 letters in 8 hours. It is now April 18, 2016, and New man has not received wither promised bonus.

Discuss Newman's right to:

a. The $50 bonus

b. The $100 bonus

Find and discuss all legal issues.

Explanation / Answer

In this case,Newman has a legal right to claim both the $50 bonus and the $100 bonus.Here the bonus is based on the performance of the employee.The employee is promised by the employer to be awarded with the bonus if he achieves the target.This is called a discretionary bonus.According to the law, an employer must exercise its discretion in good faith and on reasonable ground.If an employee meets his bonus criteria,an employer must have reasonable ground for not paying the promised bonus.Newman has achieved its target by delivering 31 letter in 8 hours.Thus he is entitled to the bonus.

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