Common use of EMPLOYEE PERFORMANCE INCENTIVES AND REWARD AND RECOGNITION Clause in Contracts

EMPLOYEE PERFORMANCE INCENTIVES AND REWARD AND RECOGNITION. The Contractor and its subcontractors may establish monetary incentive programs to motivate and recognize employees and improve performance. Such awards will be based on a combination of individual and company performance aligned to achievement of closure mission objectives. The annual cost of such programs will be an allowable cost to the Contractor upon Contracting Officer approval of the overall program as required by DOE Orders. However, the cost to DOE will not exceed four percent (4%) of annual gross payroll for any given year. Rocky Flats Closure Contract No. DE-AC34-00RF01904 H.20 Labor disputes and whistleblower actions (a) Labor settlement costs (awards) can arise from judicial orders, negotiated agreements, arbitration, or an order from a Federal agency or board. The awards generally involve a violation in one of the following areas: (1) Equal Employment Opportunity (EEO) laws, (2) Union agreements, (3) Federal labor laws, and (4) Whistleblower protection laws. (b) An award or settlement can cover compensatory damages, or underpayment for work performed. Reimbursement for a complainant employee's legal counsel may also be covered by an award or settlement. (c) The allowability of these costs should be determined on a case-by-case basis after considering the relevant terms of the contract and the surrounding circumstances; i.