• The HR Specialist - Print Newsletter
  • HR Specialist: Employment Law
  • The HR Weekly

Incentive Pay

Must we pay a bonus to someone who earned it but no longer works for us?

06/26/2009

Q. Our company pays quarterly and annual bonuses, depending on the position. If an employee is with us throughout the entire quarter/year, but leaves before we pay out the bonuses, is he still entitled to one? We don’t have a policy stating that you must be employed at the time the bonus is paid.

Deducting pay for poor work performance can destroy employees’ exempt status

06/22/2009

FLSA exempt employees must be paid the same salary regardless of the quality or quantity of their work in any given pay period. In other words, employers can’t make deductions from pay for poor work. That’s true even when the compensation comes in the form of an incentive plan.

Beware incentive plans that deduct pay from exempt employees

06/05/2009

The FLSA sets strict rules for who can be classified as an exempt employee not entitled to overtime pay. One of those is the so-called salary-basis test. Exempt employees must be paid the same salary regardless of the quality or quantity of their work in any given pay period. In other words, employers can’t make deductions from pay for poor work.

How should we handle bonuses and overtime?

05/11/2009

Q. We routinely pay our nonexempt employees an annual holiday bonus. What effect, if any, does this have on their regular rates of pay for purposes of calculating overtime?

How to Solve Your Employee Absentee Problem

05/03/2009
Login Email Address Password I forgot my password To continue reading this page, become an HR Specialist Premium Plus member today! Your subscription includes: Ask the Attorney: Answers to your HR legal questions Compliance Guidance: Access to 7,000 HR news articles, updated daily, sorted by state State-by-State: Summaries of HR laws in all 50 states […]

Slumping auto market puts salespeople out of commission

04/14/2009

Commissioned salespeople are hurting in this economy, but their employers may be feeling the pinch, too. Take, for example, Rick Case Enterprise, a company that owns several Broward County auto dealerships.

Carefully word draw-against-commission contracts—or be prepared to lose money

04/09/2009

If you pay employees on a commission basis and allow them to draw against those commissions, be very careful how you word the contract language. If you don’t specify that employees must repay any draws they do not earn back with commissions, they won’t have to.

In wake of AIG debacle, 10 steps toward better bonuses

04/07/2009

Bonuses have gotten a bad name lately. But the howls of outrage that followed news of AIG execs’ huge retention bonuses shouldn’t sound the death knell of pay for performance. Here are 10 tips for making your bonus system work in today’s economy.

After AIG debacle, it’s time to review your bonus plan

04/07/2009

Bonuses have gotten a bad name lately. But the howls of outrage that followed news of AIG execs’ huge retention bonuses shouldn’t be the death knell of pay for performance. Here are 10 tips for making your bonus system work in today’s economy.

Expect ‘lawsuit tsunami’ in wake of Ledbetter Fair Pay Act

04/07/2009

On Jan. 29, President Obama signed the Lilly Ledbetter Fair Pay Act, which may be the most important change in anti-discrimination laws in decades. It applies to all pending compensation-related lawsuits, but limits back pay to two years. Employers can look ahead to many years of legal wrangling over the interpretation of the seven key words of the act: “a discriminatory compensation decision or other practice.”