Lowe's bonuses: Here's what employees will receive

  • Lowe's is giving more than 260,000 hourly employees a one-time bonus of up to $1,000 due to new tax legislation.
  • The bonuses are determined on a sliding scale based on a worker's length of service.
Eddie Zelaya helps Carmen Ledesma as she shops for a BBQ grill at the Lowe's store on March 1, 2017 in Hialeah, Florida.
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Eddie Zelaya helps Carmen Ledesma as she shops for a BBQ grill at the Lowe's store on March 1, 2017 in Hialeah, Florida.

Lowe's is giving more than 260,000 hourly employees a one-time bonus of up to $1,000 due to new tax legislation.

The payouts are determined on a sliding scale based on a worker's length of service, Lowe's said. Full-time employees will receive more than part-time workers.

Here's what that sliding scale looks like, a source told CNBC. Lowe's declined to comment on these amounts.

Less than 2 years: Full-time employees = $150; Part-time employees = $75
2 to 4 years: Full-time employees = $200; Part-time employees = $100
5 to 9 years: Full-time employees = $300; Part-time employees = $150
10 to 14 years: Full-time employees = $500; Part-time employees = $250
15 to 19 years: Full-time employees = $750; Part-time employees = $375
20+ years: Full-time employees = $1,000; Part-time employees = $500

The bonuses will be paid later this month, Lowe's told its employees earlier this week.

The North Carolina-headquartered company also said it expects to book additional net tax expenses of roughly $75 million in the fourth quarter of fiscal 2017 due to the Tax Cuts and Jobs Act. This charge, coupled with the bonus payouts, is expected to reduce fourth-quarter earnings by about 14 cents a share, Lowe's said.

Lowe's said it will provide more details on other investments from tax savings in the coming weeks. Lowe's is set to report fourth-quarter earnings on Feb. 28.