Obama Continues Employee Bonuses

The Obama administration is opening the door to limited employee bonuses in 2014, even if sequestration continues. In 2013, it halted all bonuses. The Office of Management and Budget has issued guidance capping non-manager bonuses at one percent of aggregate salaries. It caps Senior Executive Services at five percent. The new policy limits bonus spending to 2012 levels. But that's under a regular budget scenario. Should Congress not do away with sequestration, bonus spending would be cut in proportion to the sequester cuts.