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Sign On Bonus

Objective #

The purpose of this policy is to provide guidelines to support eligibility of specialty pay at time of hire for acquired talent to all eligible University of Tennessee Foundation (UTFI) departments as deemed appropriate. 

Policy #

General Guidelines #

A sign on bonus is intended to support the acquisition of new talent with an immediate initial payout to the employee. Department supervisors can use this bonus at their discretion and under the direction of policy eligibility, UTFI may provide a sign on bonus of up to 10% of salary for a newly hired exempt level employee. Amounts greater than 10% must be approved by the campus Vice Chancellor and Chief Financial Officer (CFO) with prior notice. 

Any sign on bonus terms must be included in the offer of employment to the new employee. Refer to TM0013 Recruiting. 

Sign on bonuses will be payable to the employee on a payout schedule. Half of the approved total amount will be paid to the employee on the first pay period from start date with the remaining half of payout due to employee at the end of the introductory employment period. Refer to TM0011 Introductory Employment.  If employment is terminated for any reason within 12 months of employment, the employee must agree to reimburse the Foundation the monthly bonus amount for each month remaining between the employee’s termination date and one-year hire/rehire anniversary date (the payback amount will be prorated for any partial months). 

The sign on bonus will be reported as taxable income and subject to all appropriate withholdings. 

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