Incentive Pay

Court orders foundation chief to give up $5.3 million in comp

07/08/2009

Texas’ Third Court of Appeals in Austin recently upheld a jury’s order that Carl Yeckel, the former president of the board of directors at the Carl B. & Florence E. King Foundation, give up $5.3 million in excess compensation that he and other board members allegedly authorized for themselves.

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

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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