LUDINGTON, Mich. — A business owner in Ludington, Michigan, is giving nearly $4 million to his full-time employees as a Christmas bonus.
WZZM reported that company owner and chairman Lee Schoenherr surprised employees with the Friday announcement.
According to a news release, the gift is based on longevity of service and will be shared as a cash bonus and a special gift to the employees' 401(k) retirement accounts.
Top gifts to the most-tenured employees will be more than $60,000.
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"I believe strongly in giving back to the community by supporting initiatives that make Ludington a wonderful place to live, work and raise a family," Schoenherr said in a statement. "A few years ago, I began thinking that I would like to do something more targeted for our employees, who really are the heart and soul of FloraCraft."
The family-owned company manufactures foam products for crafts and floral projects, which are supplied to Walmart, Amazon, Michael's, Hobby Lobby, Joann and other retailers in 17 countries, according to a news release.
“This idea has developed over the past year and is my way of saying ‘Thank you’ to our team for the role they have had in our success," Schoenherr said.
Detroit Free Press reported that a spokesman said the gifts will be made over two calendar years to comply with federal laws governing employer retirement contributions.
The second cash bonus and bonus 401(k) retirement gift will be given to workers by the end of March 2020.
"While many business owners provide bonuses to employees after selling their company, Mr. Schoenherr wants to thank his team for their role in building the FloraCraft brand and business now," CEO Eric Erwin said in a statement. "He felt the time was right to share this special thank-you with our team, who are the hard-working and dedicated backbone of this company."