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Incentive Pay

Class action may be price for policies that invite off-the-Clock work

10/01/2007

Does your organization have top-down policies that tacitly create incentives for hourly employees to work extra hours without pay? If so, you may be risking a class-action wage-and-hour lawsuit. That’s what happened to one large employer when a disgruntled hourly employee claimed the company practically forced him to work extra hours in order to keep his job …

Deferred-Comp plans must comply with new rules starting Jan. 1

09/01/2007

The government hasn’t required much in the way of compliance when it comes to special executive retirement perks and bonuses. That changed in April, when Congress enacted a slew of IRS-enforced regulations known as 409A. Bring your deferred-comp plans into compliance now, or your executives could face stiff tax penalties.

Incentives for health assessment get employees into wellness

09/01/2007

To help create a culture of wellness, the Pepsi Bottling Group in Somers, NY, offered employees who participated in a health assessment a MasterCard prepaid with $75. The incentive worked: 70% of 33,500 U.S. employees participated …

Pay raises near 3.8% in ’08; more firms use bonuses

09/01/2007

A trio of new salary surveys from top consulting firms—Mercer, Hewitt and WorldatWork—predict that U.S. employers will dole out annual pay raises of about 3.8% in 2008, about the same level as this year …

Raises to remain flat in ’08, but bonuses gain favor

08/21/2007

A trio of closely watched national salary surveys say that employers plan to dole out annual pay raises of about 3.8% in 2008. The biggest trend: Employers are devoting an increasing amount of their salary budgets to bonuses. Here’s how to keep your bonus programs fair and legal…

Employees earn bonuses despite $12.7 billion in company losses

08/01/2007

Even though Ford Motor Company lost $12.7 billion last year, the Dearborn, MI-based automaker awarded “modest” performance awards in March to more than 115,000 employees …

Hourly bonuses for salaried employees?

08/01/2007

Q. I employ a physical therapist on a salaried basis, making her an exempt professional under the Fair Labor Standards Act (FLSA). Can I pay her an hourly bonus without causing her to lose the exempt status? …

Arbitration covers claims for unpaid bonus and severance

07/01/2007

The California Court of Appeal recently ruled that binding arbitration mandated by an arbitration agreement could determine a former employee’s wage claims for an unpaid profit-sharing bonus and severance pay …

‘Spiffs’ don’t count when establishing overtime exemption

07/01/2007

If you have an incentive system in which employees who sell a particular item get an additional set payment—commonly called a “spiff”—on top of other payments for selling the item, you can’t count the spiff as part of the commission …

Incentive pay hours don’t count toward the 1,250 hours required for FMLA leave

07/01/2007

Q. We are a hospital and we give employee “bonus” hours if they agree to work weekends and at other times that are difficult to staff. An employee has requested FMLA leave to care for a family member. Our employee has actually worked less than the FMLA-required 1,250 hours in the year, but because of the bonus hours, she has been paid as if she worked more than 1,250 hours. Does she qualify? …