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Bonuses Employer Liability Issues Employment Litigation

Jackson Lewis P.C.

Recent Decision on Nondiscretionary Performance Bonuses in Pay Calculations Has Wide-Ranging Implications for Illinois Employers

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In Illinois, nondiscretionary “performance bonuses,” such as bonuses paid in recognition of employees satisfying certain performance and safety metrics and seniority goals, must be factored into employees’ regular rate of pay...more

Roetzel & Andress

Illinois Supreme Court Holds Overtime Rate Must Include Non-Discretionary Bonuses Unless They Are Gifts

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The Illinois Supreme Court held employers violate overtime law by not including non-discretionary bonus payments when calculating employees’ overtime rate. The case is Mercado v. S&C Electric Co., 2025 IL 129526 (Jan. 24,...more

Wiley Rein LLP

Breach of Contract Exclusion Bars Coverage for Judgment Rendered in Employment Dispute

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The United States District Court for the Eastern District of Louisiana, applying Louisiana law, has held that an insurer does not need to cover a monetary judgment rendered in favor of two former employees of the insured...more

Littler

Supreme Court of Puerto Rico Rules PR-DOL Christmas Bonus Exemption Decree Was Inapplicable to Unionized Employees

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On June 30, 2023, the Supreme Court of Puerto Rico issued an Opinion and Order interpreting an employer’s obligation to pay the Christmas Bonus to employees covered by a Collective Bargaining Agreement (CBA).  Writing for the...more

CDF Labor Law LLP

Appellate Court Holds That Percentage Bonuses Can Be Calculated Using FLSA Method

CDF Labor Law LLP on

In a pro-employer decision addressing the overlap of federal and California wage and hour law, the California Court of Appeal for the Second Appellate District upheld summary adjudication for the employer, finding that the...more

Littler

Ontario, Canada Court of Appeal Finds Employers’ Discretion in Awarding Discretionary Bonuses Must be Exercised Fairly and...

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In Bowen v. JC Clark Ltd., 2022 ONCA 614, the Ontario Court of Appeal (OCA) put employers on notice that their discretion in awarding discretionary bonuses is not unconstrained and must be exercised fairly and reasonably. ...more

Fisher Phillips

Snapshot on Manufacturing Industry: February 2022

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Welcome to FP Snapshot on Manufacturing Industry, where we take a quick snapshot look at the most significant workplace law developments over the past month with an emphasis on how they impact manufacturers. OSHA Penalties...more

Fisher Phillips

Top 10 Wage and Hour Trends for 2022 – and What Employers Should Do to Prepare

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We recently provided our predictions for what employers could expect to see in the wage and hour field over the next year as part of our FP Forecast series – but we had too many insights to fit into that edition. So we’ve...more

Fisher Phillips

The Importance of Getting the California “Regular Rate” Right

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While most California employers are familiar with the “regular rate” from calculating non-exempt employees’ overtime payments, changes in the law make clear that employers will now need to perform the same regular rate...more

CDF Labor Law LLP

[Webinar] The “Golden State” of PAGA: Status and Trends of CA Wage and Hour Litigation - August 26th, 10:00 am PT

CDF Labor Law LLP on

Developments during the COVID-19 pandemic have left a dark cloud of uncertainty for employers in the Golden State, and have led to many new claims under the Private Attorneys General Act (PAGA). This webinar will cover how...more

Littler

COVID-19 Labor & Employment Litigation Tracker (UPDATED)

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Since March 12, there have been 1,914 lawsuits (including 152 class actions) filed against employers due to alleged labor and employment violations related to the coronavirus....more

Littler

Ontario, Canada: Court of Appeal Upholds Dismissed Employee’s Right to Damages for Value of Incentives That Would Have Vested...

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Whether a wrongfully dismissed employee is entitled to damages as compensation for the value of incentives that would have vested during the reasonable notice period is frequently litigated in Canada....more

Seyfarth Shaw LLP

Close Was Not Close Enough: First Circuit Denies Executive’s Implied Covenant Claim For Unpaid Equity Compensation Related To A...

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Seyfarth Synopsis: On November 27, 2019, the United States Court of Appeals for the First Circuit held that, under Massachusetts law, a terminated employee asserting a claim for being deprived of lost compensation in breach...more

Troutman Pepper Locke

Agreement Between the Parties Dictates Whether a Third Party Bonus Should be Included in the Calculation of Overtime Pay

Troutman Pepper Locke on

Q.  A client of my company asked whether it could offer production bonuses to our employees who deliver their work product prior to the deadline.  Does the FLSA require my company to account for these third-party bonuses when...more

Foley & Lardner LLP

To Pay or Not to Pay – That is the Question!

Foley & Lardner LLP on

A sales employee suffers from acute stress and anxiety, which ultimately force him to take a 12-week medical leave of absence under the FMLA.  Later that year, when the employer considers bonuses, the employee does not...more

Littler

Littler Global Guide - Belgium - Q3 2018

Littler on

Law Implementing GDPR Published in Belgian Official Gazette - New Legislation Enacted - The Belgian Law of July 30, 2018, on the protection of natural persons with regard to the processing of personal data was...more

Downey Brand LLP

California Supreme Court Clarifies Overtime Calculation Involving Flat Sum Bonuses

Downey Brand LLP on

In a less-than-favorable decision for employers – Alvarado v. Dart Container Corporation – the California Supreme Court addressed how to calculate the overtime pay rate when the employee earns a non-production, flat sum bonus...more

Hogan Lovells

Double jeopardy – Withholding a bonus is not punishment

Hogan Lovells on

The judgment of the Labour Court in a review application by Solidarity obo K Oelofse v Armscor was delivered by Snyman AJ on 21 February 2018. This judgment reinforced the principles regarding double jeopardy and also...more

Ervin Cohen & Jessup LLP

Employment Law Reporter May 2018: No Good Deed Goes Unpunished – California Supreme Court Decision May Change the Way Employers...

California is a difficult landscape for employers, and last month, the California Supreme Court made that landscape all the more difficult. In a case called Alvarado v. Dart Container Corp., the California Supreme Court...more

Best Best & Krieger LLP

California Departs From the Federal Overtime Calculation Standard - State Supreme Court Retroactively Adopts California Division...

California businesses must follow a different standard than that allowed under the federal rules when calculating overtime to address flat sum bonuses. ...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Darting Ahead: California Supreme Court Adopts New Formula for Flat Sum Bonuses

For decades, many employers across California relied upon established federal law governing the calculation of overtime compensation on bonuses. Under federal law, the same set of rules apply to flat sum bonuses (i.e., set...more

Carlton Fields

Calculating Overtime Pay When Paying a Flat Sum Bonus in a Single Pay Period

Carlton Fields on

Failing to comply with last week’s California Supreme Court order concerning overtime pay and lump sum bonuses may expose you to costly class actions like so many other California employers....more

Littler

California Supreme Court Determines How Flat Sum Bonuses Factor into Overtime Calculation

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The California Supreme Court recently decided the question of how an employee’s overtime pay rate should be calculated when the employee has earned a flat sum bonus during a single pay period....more

Snell & Wilmer

California Supreme Court Deviates From Federal Regulations on Calculating Regular Rate of Pay on Flat Rate Bonuses

Snell & Wilmer on

On March 5, 2018, the California Supreme Court decided Alvarado v. Dart Container Corp., and formally diverged from the federal regulations on calculating overtime for flat rate bonuses....more

FordHarrison

California Supreme Court's Recent Overtime Ruling Likely to Cause Payroll Problems

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On March 5, 2018, the California Supreme Court issued a ruling clarifying how employers must handle flat-sum bonuses (i.e., additional compensation that does not change depending on the number of hours worked by an employee)...more

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