News & Analysis as of

Employer Liability Issues Bonuses

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

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

Stay Off the Naughty List: Mistakes to Avoid With Holiday Gift Giving

Many employers give holiday gifts to boost workforce morale and spread holiday cheer. But that purpose will not be fulfilled if the gifts turn out to be insulting or a tax burden for employees....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

Fox Rothschild LLP

Employers Must Beware Of Year-End Wage Hour Issues/Landmines!

Fox Rothschild LLP on

I read an interesting post by Sara Zorich of Amundsen Davis concerning the year-end wage hour issues that employers must deal with, and I agree with the concepts set forth in that article. There are a number of implications...more

Amundsen Davis LLC

Time to Check Your Year-End Wage and Hour Compliance

Amundsen Davis LLC on

As we wind down 2023, your company may be sharing with its employees either through business closing periods or end-of-the-year bonuses. Employers must be cognizant that these generous gestures may carry compliance...more

Morrison & Foerster LLP

Key Updates for UK Employers: A Look Through to the End of 2023 and Beyond

Morrison & Foerster LLP on

The regulatory landscape for UK employers has evolved significantly over the second half of 2023. New legislation is in force or is due to come into force over the next 12 months, covering a variety of employment-related...more

Littler

Is a Bonus Clawback Provision a Restraint of Trade in the UK?

Littler on

In a reassuring decision for employers, the UK High Court has confirmed that an employer’s use of a contractual provision to claw back an employee’s bonus was lawful. The ruling in Steel v Spencer Road LLP provides helpful...more

Littler

Scrapping the UK Banker Bonus Cap — What Next for Financial Services Pay?

Littler on

Financial services firms regulated in the UK by both the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have long caused confusion, particularly in international financial services groups, with...more

Katten Muchin Rosenman LLP

Want to Leave Your Employment? That Will Cost You!

It's the run-up to bonus season in the UK and there is a lot to talk about. While the markets may have cooled down, the caps are off! In a controversial move, regulators removed the regulatory cap on banker's bonuses on 31...more

Ius Laboris

UK ends cap on bankers’ bonuses

Ius Laboris on

It’s official. The UK’s cap on bankers’ bonuses has been lifted. There are some opportunities for firms here, but it shouldn’t mean a return of excessive risk taking....more

Fox Rothschild LLP

The “Regular Rate” For FLSA Purposes Can Be A Confusing Concept For Employers And An Expensive One!

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I read an interesting post by Frank Shuster of Constangy, Brooks, Smith on the thorny and often misunderstood issue of the “regular rate” and what that concept entails for compliance with the FLSA. Many employers,...more

Littler

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

Littler on

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

CDF Wage and Hour Task Force – Monthly Tips: Regular Rate of Pay Calculation - What needs to be included and why does it matter?

CDF Labor Law LLP on

This is the fourth post in our monthly series of CDF’s Labor & Employment Law Blog providing California employers with wage and hour compliance tips and best practices. In California, non-exempt employees who are not...more

Fisher Phillips

The Road to Hell is Paved with Good Intentions: Top 7 Wage and Hour Mistakes for Hospitality Employers to Avoid

Fisher Phillips on

Employers in the hospitality industry have been through it all in recent years – from the devastation of the pandemic to ongoing labor shortages to an impending recession. These challenges and dramatic changes have surely...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

Fox Rothschild LLP

Not Including Promised Bonuses In Regular Rate A Big No-No!

Fox Rothschild LLP on

It is black letter FLSA canon that a promised bonus, such as a production bonus, or longevity bonus, must be included in the regular rate of employees who work overtime for the period of time covered by the bonus. This maxim...more

Littler

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

Littler on

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

Parker Poe Adams & Bernstein LLP

Overtime Rules Require Addition of Incentive Compensation to Regular Rate

​​​​​​​Over the years, we have periodically published EmployNews articles on the impact of bonuses or other incentive compensation on the regular rate used to calculate overtime under the Fair Labor Standards Act (FLSA)....more

Stoel Rives - World of Employment

Oregon Pay Equity Update: The Status of Hiring Bonuses

In the wake of the Covid-19 pandemic, the Oregon legislature amended the definition of “compensation” in the Oregon Equal Pay Act to temporarily exempt hiring/signing and retention bonuses from the limitations imposed by the...more

Foley & Lardner LLP

Perfect Attendance Awards: How to Navigate Them Perfectly

Foley & Lardner LLP on

What is one of the key ways to promote good attendance? For many employers, it is by implementing a perfect attendance award bonus for employees who work for a month or a quarter without missing any scheduled work days...more

Amundsen Davis LLC

[Live Stream Event] Hiring, Onboarding and Retention: Diversity, Compensation, Benefits and More - September 21st, 12:00 pm - 5:00...

Amundsen Davis LLC on

Join us on Wednesday, September 21 at noon for a live-stream of our Eighth Annual Labor & Employment Fall Seminar as we discuss hiring, onboarding and retention. Our attorneys will discuss everything from the initial...more

Haynsworth Sinkler Boyd, P.A.

Bonuses & Calculating an Employee’s Regular Rate of Pay for Overtime

The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid no less than time and one-half their regular rate of pay for all hours worked over 40 hours in a workweek. How should an employer calculate an...more

Fox Rothschild LLP

Bonuses Must Be Included In Regular Rate For Non-Exempt Employees: Another Cautionary Tale?

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What employers often miss when calculating proper overtime is that they must include in the regular rate different kinds of supplemental payments that non-exempt people receive. If they do not, they are not paying properly. ...more

Littler

New Obligations for Frontline Sector Employers through Minnesota’s Frontline Worker Pay Program

Littler on

On April 29, 2022, Minnesota Governor Tim Walz signed S.F. No. 2677 (2022) into law.  This law authorizes bonus payments to Minnesotans who worked in frontline sectors during the COVID-19 peacetime emergency.  This so-called...more

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