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The merit-based pay system would be a rewards system, and there are many different ways of constructing such a system. In California, there is a “Mentor Teacher Program” that gives out an extra four thousand dollars per year to any teacher whospends forty percent of their time to further developing teaching strategies and helping other teachers. In Florida, a voluntary merit-based plan involves teachers holing master’s degrees, must also have at least four years of previous teaching experience. They must then pass an exam based on the subject they teach, and then must pass an evaluation given by another teacher, principal, and subject specialist.

Although there hasn't been any system that has been legitimately enacted, many states are experimenting with the idea of giving teachers some sort of bonus in order to create a rewards system. There are many different ways that school districts have been going about the construction of such a procedure. In California, there is a “Mentor Teacher Program” that delves out an extra four thousand dollars per year teachers. In order to be eligible for this bonus, teachers must commit at least forty percent of their time to assisting fellow teachers. This includes further developing curriculums and lesson plans. In Florida, a voluntary merit-based plan involves teachers who, aside from already holding master’s degrees, must also have at least four years of previous teaching experience in order to be considered for the program. They must then pass an exam based on the subject they teach and pass an evaluation given by three other observers: the principal, a fellow teacher, and a specialist in the subject. These school districts have been receiving extremely positive feedback from students, parents, and other community members.