INCENTIVE PAY

Choose bonus pay method and stick with it

07/01/2004

Q. Our company pays monthly bonuses to hourly employees based on the previous month's performance. When calculating overtime, should the bonus pay be included only for the weekly payroll that contains those bonuses, or does it change the overtime rate for other weekly pay periods, as well? —A.A., Tennessee

Max out results from your employee-referral program

03/01/2004
Issue: Imaginative cash rewards are the key to successful employee-referral programs. Benefit: Employees hired through employee referrals have higher retention rates. Action: Read below to gauge whether your rewards ...

Prevent new-hire no-shows

11/01/2003
As the job market heats up, more applicants will accept jobs and then back out at the last minute, or simply fail to show up on Day 1. Midlevel sales, financial ...

Bonus plans don't erase your overtime obligations

07/01/2003

Q. We plan to roll out an incentive plan for all employees. The incentive would be calculated monthly but paid quarterly in addition to regular pay. As part of the plan, we are eliminating overtime. Can we still have employees punch in to monitor attendance or can that come back to haunt us if they work extra hours to reach the incentive threshold? —J.B., New Jersey

Don't link vacation bonus to exempt workers' hours

06/01/2003

Q. Can we give an exempt employee extra vacation days in addition to the standard accrued time off outlined in our employee handbook? —T. L., Maryland

It's OK to Offer Incentive to Drop Health Coverage

03/01/2003

Q. Due to rising premiums, our company is looking into alternatives to reduce our group health benefit costs. Several employees are on our plan and their spouses' plan. They are willing to go off our group plan if we compensate them “x” amount of dollars each month. Is it legal to offer the medical insurance benefit or a cash alternative? —S.P., Michigan

Offset bonus pay against weekly overtime with care

02/01/2003
Fabri-Centers gave workers several bonus payments above their base pay, including shift differentials, holiday pay and spot bonuses. But the company calculated employees'...

You can't shave employee's bonus just because she took FMLA leave

12/01/2002
When the company Valerie Dierlam worked for was sold, the acquiring firm offered her a bonus of half her salary if she stayed for one year. She did, but the ...

Don't silence or punish workers who compare their pay

09/01/2002
A marketing director at one of Covenant Care's nursing facilities attended a meeting of other marketing directors in the company. During the meeting, she joined other directors in a brief discussion ...

Giving a bonus can cost you in discrimination case

10/01/2001
Lisa Russell was rated "excellent" and received a bonus of $807. So what's her gripe? An African-American co-worker received a higher rating of "outstanding" and a bonus of $1,355. Russell, who ...

Sweeten Deal to Retain Worker After Training

10/01/2001

Q. We just covered the entire cost for an employee to complete nurses' aide training. We intended to draw up an agreement before the training so that this employee would be available to our business for six months before she could seek other employment, but we failed to discuss the agreement before the training. Can we have her sign such an agreement now? —C.E., Ohio

Beware OT Calculation When It Involves Bonus Pay

09/01/2001

Q. We have an add-on to wages of $100 if an employee who's not scheduled to work gets called in within 72 hours. The employee gets paid for the hours worked at his normal wages, with time and a half if it adds up to overtime. The $100 is then added for the hours worked, and taxes are calculated on these earnings as usual. Is this a legal way of rewarding employees for coming in on short notice? –J.S., Oklahoma

Big overhaul of overtime and wage law may be coming

04/01/2001
That little old law that employers love to hate may be in for a shake-up, one that you just might enjoy. Political winds seem to be blowing strong enough, and ...

You don't have to ignore harmful effect of absences

03/01/2001
Calvin Keeler started as a senior vice president overseeing 85 employees. He earned bonuses exceeding $30,000 while enjoying a large office. Within a few years, he had been downgraded to a ...