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Incentive Pay

Pay commission? Make sure contracts are clear about terms

02/01/2008

Commissions are a great way to motivate some employees to work harder. Usually a contract spells out the commission terms and how the payments work. But if the contract is the least bit unclear, expect trouble—especially if someday you have to discharge a commissioned salesman for poor performance …

Meanwhile, back at the state, employees seem well fed

12/01/2007

Nobody’s accusing the state of Pennsylvania—where “Bonusgate” charges have been swirling—of underpaying its workers. Trying to hold onto his party’s slim majority in the Statehouse, Democratic Majority Floor Leader Bill DeWeese instituted new ethics policies in the wake of a grand jury probe …

Verizon moves toward pay transparency—in due time

12/01/2007

Verizon has announced that shareholders annually will get to approve or reject the company’s pay plans—starting in 2009. At the company’s annual meeting in May, more than half of the shareholders voted in favor of a “say on pay” proposal fronted by The Association of BellTel Retirees …

Paying commission? Get written agreement

12/01/2007

If your organization pays some employees on a commission basis, it may be a good idea to put it in writing. Relying on just an oral agreement may lead to trouble down the road—especially if the employee quits and says you owe him money. Without a written agreement spelling out the commission terms, a lawsuit probably will come down to his word against yours …

NCWHA governs employee incentive and bonus plans

11/01/2007

Incentive-pay programs and bonus plans are very common in North Carolina and sometimes constitute a significant portion of an employee’s pay. But if a dispute develops, the employee does not have a claim for breach of an employment contract. Instead, the North Carolina Wage and Hour Act (NCWHA) applies. The application of the NCWHA, which contains notice and nonforfeiture requirements, often takes employers and employees by surprise …

$100,000 day at Hershey Park: Employee appreciation or excess?

11/01/2007

Preliminary figures from a state audit of the Pennsylvania Higher Education Assistance Agency (PHEAA) revealed extravagant expenditures by the agency, including a $108,000 employee appreciation day at Hershey Park just a month after PHEAA promised to curb spending …

HR Professionals: How Much Are You Really Worth?

10/30/2007

Are you overpaid, underpaid or in the right ballpark? A new survey of 88,000 HR professionals provides average compensation levels for dozens of HR positions. Plus, it highlights an important trend–incentive compensation is growing more common in the HR world.

Attract and keep great employees with these 5 ‘Best practices’ benefits

10/23/2007

As the HR profession celebrates National Work and Family Month—you knew October was National Work and Family Month, didn’t you?—it’s time to stock up on innovative benefits ideas from U.S. employers. From wellness incentives to “future leave,” these best practices help attract and retain great workers …

NC officials launch 40% more wage investigations since 2003

10/01/2007

State examiners looking into wage-and-hour violations at North Carolina businesses opened 7,665 investigations in 2006. That’s an 18% increase over the previous year and a nearly 40% increase from 2003 investigation levels, according to the North Carolina Labor Department’s 2006 annual report …

You can pro-Rate bonuses based on FMLA leave time

10/01/2007

Does your organization offer a bonus plan that rewards workers for their productivity? If so, be sure to avoid a surprisingly common mistake that’s tripped up many Indiana employers: incorrectly structuring the bonus plan—or making deductions from bonuses—in a way that violates the FMLA. A new Indiana court ruling shows how an organization can legally pro-rate an employee’s bonus …