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Bonuses Wage and Hour Employment Litigation

Ius Laboris

South Korean Supreme Court Upholds ‘Payment Date’ Requirements

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The South Korean Supreme Court recently ruled that bonus payment can be conditioned on the employee remaining employed on the payment date, resolving an issue that had been left unclear in a prior decision. ...more

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

Shook, Hardy & Bacon L.L.P.

Retention Bonus Not Wages Under Massachusetts Law, Appeals Court Finds

In a recent decision, the Massachusetts Appellate Division of the District Court Department affirmed the trial court’s award of summary judgment in favor of an employer that had argued that a retention bonus did not...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

Stikeman Elliott LLP

Ontario Superior Court of Justice Awards Retired VP $1.8m in Damages for Incentive Compensation and Vacation Pay

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The Ontario Superior Court of Justice’s decision in Boyer v. Callidus, 2024 ONSC 20 (“Callidus”) serves as a helpful reminder to employers of the importance of carefully drafting, documenting, and communicating contractual...more

BCLP

UK HR Two Minute Monthly: November 2023

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Our November update includes a Supreme Court decision on employment status and the right to join a trade union, whether a bonus clawback clause can be an unlawful restraint of trade, and how to deal with a “heat of the...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

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

Employee Benefits and Rights in Puerto Rico: What to Know Now That Law 41-2022 Has Been Declared Null and Void

On March 3, 2023, the U.S. District Court for the District of Puerto Rico issued a decision declaring Law 41-2022 null and void, effectively reinstating the prior state of many of Puerto Rico’s employment statutory...more

CDF Labor Law LLP

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

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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

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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

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

Ninth Circuit Reverses $100+ Million Wage Statement Ruling Against Walmart

On May 28, 2021, the Ninth Circuit Court of Appeals issued a significant ruling in Magadia v. Wal-Mart Associates, Inc., on both California’s wage statement laws and standing to pursue claims under the Private Attorneys...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

Supreme Court of Canada Overturns Court of Appeal in Landmark Bonus Case

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On October 9, 2020, in Matthews v. Ocean Nutrition Canada Ltd., 2020 SCC 26, the Supreme Court of Canada (SCC)—the highest court in the country—released a highly anticipated decision in an employee’s appeal of the Nova Scotia...more

McNees Wallace & Nurick LLC

New FLSA Compliance Landmine: Beware Bonuses Paid by Third Parties to Your Employees!

For decades, federal wage and hour regulations have required that non-discretionary bonuses paid to employees be included in the recipients’ “regular rate” for purposes of calculating their overtime premiums.  In other words,...more

Troutman Pepper Locke

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

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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

Parker Poe Adams & Bernstein LLP

Bonuses Paid by Third Parties Excluded From Regular Rate for Overtime Calculation Purposes

Perhaps the most frequently violated provision of the Fair Labor Standards Act is that law’s requirement that non-discretionary bonuses be included in non-exempt employees’ regular rate of pay used for purposes of calculating...more

Foley & Lardner LLP

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

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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

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

FMLA Leave: When Can Employers Prorate Bonus Payments?

Employers frequently wonder when to pay bonuses to employees on leave under the Family and Medical Leave Act (FMLA). Do employees who do not meet certain goals due to leave qualify for such bonuses?...more

Littler

Littler Global Guide - Belgium - Q3 2018

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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

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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

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