Incentive Pay

Bonuses advanced and then rescinded: Does that threaten MFLSA exempt status?

10/15/2009

Q. Our bonus plan states that employees eligible to receive bonus pay will receive bonus advances with each paycheck based on year-to-date performance results. Last year, we were on track to meet the maximum bonus throughout most of the year, but the last few months of the year were slow and we didn’t meet our target goal. As a result, we deducted certain amounts from the last few paychecks of salaried employees. Do these deductions threaten the exempt status of the salaried employees?

Is a health insurance opt-out bonus taxable?

09/18/2009

Q. We give employees who opt out of our health plan a bonus. Do we withhold federal taxes on that bonus?

How to avoid the salary negotiation trap

09/15/2009

It sometimes takes extra money to entice an applicant to jump ship. That’s all part of the hiring dance. But there’s a hidden peril that could land you in court—and cost you thousands. Learn the best practices that will help you defend yourself.

Recession revisited: Is it time for cautious optimism on pay?

08/07/2009

As hard as this recession has been on everyone, it has forced organizations to look at how to spend compensation budgets more efficiently and more effectively. What has shaken out is a new system of pay raises and bonuses that rewards employees for doing top-notch work rather than for simply showing up for work. Here are five lessons compensation pros have learned during these hard times:

How does the FLSA treat bonuses & overtime?

08/04/2009

Q. How do bonuses affect the overtime rate calculation under the Fair Labor Standards Act?

What’s a bad firing cost? For one company, $4 billion

07/28/2009

Yes, you read right. Four billion dollars. Billion—with a “B”! A California superior court recently confirmed an award of $4.1 billion against a Chinese company, its U.S. affiliate and its founder after an arbitrator found them liable in a compensation dispute with a former executive.

What should I consider when updating our noncompete agreements?

07/27/2009

Q. The employment and noncompete agreements we have with our salespeople are several years old and appear outdated to me. May I require everyone to sign new, updated agreements?

Contract conundrum: Pay lawyer now, or pay employee later?

07/27/2009

Confusing contract language did not cost a New Jersey car dealer millions of dollars, but in this economy, who can afford to lose even a little?

Want healthier staff? Cash incentives work best

07/24/2009

First, employers suggested. Then, they encouraged. Then pleaded. Now more U.S. employers are turning to the almighty dollar to get their employees to change their pound-packing, chain-smoking, sedentary ways. Despite the sour economy, more employers are creating and expanding wellness programs in recent years. And they’re increasingly turning to financial rewards and penalties to increase participation.

Check employment agreements for commission cutoffs

07/17/2009

Here’s a good idea if you are reviewing employment agreements that spell out how you pay commissions: Be sure to specify that the end of employment means the end of commissions.