For years, the DOL has argued that commissions must be based on a percentage of sales in order to be valid. But now the 3rd Circuit has approved a different form of commissioned sales—one in which employees are paid based not on the total amount of the sale, but on other factors such as whether the sale was made on an outgoing sales call or an incoming one.

Does your company employ salespeople who are responsible for meeting certain benchmark goals? If so, be sure you have some way to check that everyone competes on an even footing. That includes ensuring that things like territories and leads are distributed in a way that doesn’t favor members of one group at the expense of another.

With nervous employers still keeping generous raises on the shelf, more companies are turning to job title promotions to show their appreciation. The risk: The titles themselves don’t reflect the duties of the position and required expertise, which can cause difficulty separating exempt and non-exempt employees.

U.S. employers will hand out pay raises averaging 2.5% across all employee categories in 2010, according to the annual WorldatWork 2010-2011 Salary Budget Survey. But in most cases, the size of the raise will depend on how well employees have performed. Employers "are no longer averse to withholding merit increases for poor performers so they can afford to grant meaningful increases to better performers,” says Anne C. Ruddy, president of WorldatWork.

Here’s more incentive to pay close attention to your compensation practices: Wage-and-hour lawsuits can easily morph into collective actions in which a few employees represent all similarly situated employees. Even if an employer manages to persuade the court that the claims aren’t suitable for a collective action, that doesn’t mean the case is over.

If you want your organization’s employees to work more productively, pay more attention to them. During the economic crisis of 2009, the most effective business strategy turned out to be increased supervision and management of employees. Research by RainmakerThinking shows that organizations that combined three effective strategies during the recession had better financial results than others:

If you’re thinking about switching to a production-based compensation system that pays more to the most productive employees, don’t worry too much about the plan’s possible disparate impact on some groups. As long as you don’t use the system to discriminate against a particular group—or favor another—courts are unlikely to conclude that any uneven results were caused by discrimination.

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After two years of painful payroll reductions, there’s enough light at the end of the recessionary tunnel for some employers to begin considering pay raises. But in a volatile economy, implementing performance incentives and bonus plans is easier said than done. Experts say two tactics can help HR pros create variable pay plans that strike a balance between risk, reward and fiscal stability.

Q. Our company pays out bonuses in the year after the work is completed, sometimes late into the first quarter. If an employee resigns before the bonus payout date (say, in February), do we have to pay a bonus to that employee?

Q. May we include a provision in our bonus plan for North Carolina employees that they will forfeit any bonus that has not been paid at the time of termination?