By Kelly Smith-Haley, JD
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Few words have inspired more conversation and speculation around the proverbial water cooler than the words “discretionary bonus.” Like Clark Griswold in the movie Christmas Vacation, employees have certain expectations about what their bonus should be (enough to buy a pool!).
Employers, however, assume that by creating “discretionary bonuses,” they have the unfettered flexibility to award or deny them. But there are limits to this discretion, as the Illinois Appellate Court explained in a recent decision.
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