Incentive Pay

Is it legal in North Carolina to withhold bonuses not paid at the time of termination?

01/22/2010

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?

3 variable pay trends help weather recession

01/12/2010

By focusing sales compensation on what matters most, successful companies are offering up lessons on variable pay from which every compensation pro can learn. Struggling to make variable pay work for your organization? Pay attention to these sales compensation trends that just might apply in your organization:

OK to withhold commissions from employees who violate fiduciary obligations

01/07/2010

The Texas Payday Act allows employees to sue for commissions earned but unpaid after termination. But that doesn’t mean that employees are always owed such commissions. If they violated their fiduciary duty to their employers by disclosing confidential information to a competitor, it’s legitimate to withhold pay.

Bonuses at high school sports governing body violate policy

12/24/2009

The tax-exempt North Carolina High School Athletic Association apparently violated University of North Carolina policy when it paid bonuses to its managers. The association administers high school sports throughout the state. From 1999 to 2008, the association paid out $239,133 in bonuses to managers and $7,820 to nonmanagement staff. The employees won’t have to return the money.

OK to tie incentives to continued employment

12/22/2009

The Supreme Court of California has ruled that employers are free to develop incentive payment plans that reward loyalty by requiring employees to stay for a period of time before earning the full benefit.

Companywide bonuses take wing at American Airlines

12/21/2009

Business and vacation travel may be down, but American Airlines says customer satisfaction is up—and is rewarding about 71,000 employees for making it happen. The Fort Worth, Texas-based airline awarded $10.6 million—about $150 per employee—to staffers who helped the organization achieve its fourth-quarter 2009 customer satisfaction goals.

Double-check all commission agreements! You could be liable for more than you think

12/09/2009

If you pay commissions under a written compensation plan that covers commissions earned only while the employee works for your company, be careful how you handle terminations—and discussion concerning payment of further commissions. In some circumstances, you could inadvertently create additional liability for unpaid commissions …

Employees awarded $2M … lawyer blows it day trading

12/01/2009

An Orange County attorney has agreed to plead guilty to two felony charges after frittering away millions of dollars of his clients’ settlement awards—by placing losing bets on the stock market. Sandeep Baweja, sole proprietor of Baweja Law Group, was representing 800 real estate agents who sued their employer for denying commissions and other payments.

Bonuses advanced and then rescinded: Does that threaten MFLSA exempt status?

10/15/2009

Q. Our bonus plan states that employees eligible to receive bonus pay will receive bonus advances with each paycheck based on year-to-date performance results. Last year, we were on track to meet the maximum bonus throughout most of the year, but the last few months of the year were slow and we didn’t meet our target goal. As a result, we deducted certain amounts from the last few paychecks of salaried employees. Do these deductions threaten the exempt status of the salaried employees?

Is a health insurance opt-out bonus taxable?

09/18/2009

Q. We give employees who opt out of our health plan a bonus. Do we withhold federal taxes on that bonus?