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ArentFox Schiff

California Court Upholds Percentage Bonus, Without Recalculating Overtime Regular Rate

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Similar to the federal Fair Labor Standards Act (FLSA), California law requires an employer to pay overtime based on an employee’s “regular rate of pay.” That rate may not be just an employee’s hourly wage, or straight time,...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

Holland & Knight LLP

Fifth Circuit: Burden of Proof on Employees to Show Bonuses Should Be Included in Overtime Rates

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The U.S. Court of Appeals for the Fifth Circuit, in an issue of first impression, has answered a critical question in Fair Labor Standards Act (FLSA) overtime disputes: "Who has the burden of proof on whether bonuses are...more

Butler Snow LLP

Bonus Plans for Louisiana Employees Must Comply with Louisiana Wage Payment Statute

Butler Snow LLP on

The Louisiana Wage Payment Act (“LWPA”), La. R.S. 23:631, et seq., requires an employer who discharges an employee to promptly pay the employee the amount due under the terms of employment. The LWPA also prohibits an employer...more

Parker Poe Adams & Bernstein LLP

U.S. Labor Department Proposes Rules on Bonus Pay for Fluctuating Workweeks

Last Monday, the U.S. Department of Labor’s Wage and Hour Division issued proposed regulations that would clarify employers’ use of incentive pay under the fluctuating workweek (FWW) pay method. FWW is an alternative pay plan...more

Troutman Pepper

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

Troutman Pepper 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

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

Blake, Cassels & Graydon LLP

Court of Appeal Confirms: Reasonable Notice Is Capped At 24 Months, Absent Exceptional Circumstances

Employers can breathe easy once again knowing that common law reasonable notice is still capped at 24 months, absent exceptional circumstances. On June 19, 2019, the Court of Appeal for Ontario (Court of Appeal) released...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

Holland & Knight LLP

Eleventh Circuit Affirms Vitality of the Employee Exemption to the Anti-Kickback Statute

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On Aug. 7, 2018, the 11th Circuit Court of Appeals affirmed the dismissal of a whistleblower case brought under the federal False Claims Act. The principal grounds for affirmance was a finding that the employee exemption to...more

Payne & Fears

Key California Employment Law Cases: March 2018

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This month’s two key California employment law cases are both significant decisions involving wage and hour laws. Alvarado v. DART Container Corp. of Cal., 4 Cal. 5th 542 (2018) - Summary: California formula for...more

Sherman & Howard L.L.C.

Late Limit on Bonus Plan Has No Effect

The 8th Circuit Court of Appeals recently offered a refresher course on contract formation, as applied to employee bonus plans. The employer promised substantial bonuses, payable in five years, provided the eligible at-will...more

Akin Gump Strauss Hauer & Feld LLP

Delaware Supreme Court Reins in Stockholder Ratification of Director Compensation

• Directors were not entitled to stockholder ratification defense where stockholders only approved the general parameters of director and employee bonuses • This marks the first time in nearly 60 years that Delaware’s...more

Littler

Ontario, Canada: Limiting Bonus Entitlements When Employment Ends

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The Ontario Court of Appeal recently upheld a lower court’s dismissal of an employee’s claim for payment of a bonus after resignation because the employer’s non-discretionary bonus policy included an “active employment”...more

Bass, Berry & Sims PLC

Employees Paid on a Commission Basis Must Be Paid a Separate Minimum Wage for Rest Periods

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Employers who pay employees commissions should evaluate their compensation schemes to ensure compliance with California law in light of the California Court of Appeals’ recent ruling in Vaquero, et al. v. Stoneledge...more

Bennett Jones LLP

Plain Language in Bonus Plan Prevails: No Employment, No Vesting, No Bonus

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In positive news for employers, in Styles v Alberta Investment Management Corporation, 2017 ABCA 1 [Styles], the Alberta Court of Appeal (ABCA) affirmed that an employee who does not meet a clear and well drafted condition of...more

Parker Poe Adams & Bernstein LLP

Employee on Extended Medical Leave Cannot Claim ADA Violation for Reduced Discretionary Bonus

The Americans with Disabilities Act prohibits employers from discriminating against protected individuals with respect to terms and conditions of employment, including compensation. Employers frequently ask whether these...more

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