Bonuses

News & Analysis as of

Bonus Points: ARB Upholds Whistleblower Order Challenging Bonus Plan

The Department of Labor’s Administrative Review Board (“ARB”) recently upheld an order finding a semiconductor company had constructively discharged a manager who complained the company’s bonus plan violated state wage and...more

Tom Brady’s suspension reinstated, so what are the potential Massachusetts tax consequences?

Deflategate and the NFL’s suspension of quarterback Tom Brady for 4 games has been the NFL’s biggest news story of the past two years. On April 25, 2016, the United States Court of Appeals for the Second Circuit ruled in...more

Is Your Corporation “Zeroing Out” Income at End of Year Through Bonuses? Watch Out!

For the last few years the IRS has warned taxpayers that it would look closely at year-end bonuses that resulted in “zeroing out” taxable income of a corporation by deducting the bonuses as salary rather than a payment of...more

Disclaimer in Top-Hat Plan Could Save Millions for Employer

Do you have a top-hat plan? That’s a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees...more

California Employment Law Notes - March 2016

Nuclear Plant Maintenance Manager's Whistleblower Claim Was Properly Dismissed - Sanders v. Energy Northwest, 2016 WL 560809 (9th Cir. 2016) - David W. Sanders, a maintenance manager for Energy Northwest (a...more

Corporate and Financial Weekly Digest - Volume XI, Issue 9

SEC/CORPORATE - SEC Chair Addresses Advisory Committee on Small and Emerging Companies - On February 25, Securities and Exchange Commission Chair Mary Jo White addressed members of the SEC’s Advisory Committee on...more

Federal Law Applies in Calculating Overtime on Flat Sum Bonuses

Paying employees a bonus may trigger the obligation to pay retroactive overtime. The good news is that Alvarado v. Dart Container Corporation of California clarifies that it is lawful for California employers to use the...more

California Court Approves FLSA Formula For Flat Bonuses

The California Court of Appeal provided employers with a small New Year’s gift for 2016: on January 14, in Alvarado v. Dart Container Corporation of California, it affirmed that an employer’s formula for calculating overtime,...more

Federal Formula for Calculating Bonus Overtime Lawful in California

Seyfarth Synopsis In A Second: A California employer can use the federal formula for calculating overtime on a flat sum bonus, even though the California Division of Labor Standards Enforcement Manual states otherwise....more

California Court Clarifies How to Calculate Overtime on Flat Sum Bonuses

A California court of appeal has addressed a gap in California law to clarify what can be a tricky problem for employers — how to calculate overtime on bonuses of a fixed amount, or “flat sum” bonuses. The court’s answer can...more

The EBA’s New Remuneration Guidelines: Expanding the Scope of the Bonus Cap

On 21 December 2015 the European Banking Authority (“EBA”) published its final guidelines on sound remuneration policies (the “Guidelines”), together with its opinion on proportionality (the “EBA Opinion”)....more

Bridging the Week - January 2016 #2

FINRA Will Grade Members on Culture, Supervision and Liquidity Management; BDs Not Managing Spoofing Likely to Get Bad Scores: The Financial Industry Regulatory Authority kicked off the new year by issuing its annual...more

What Is A "Percentage Bonus"?

Overtime wages for employees subject to the federal Fair Labor Standards Act's overtime requirement must be based upon the "regular rate" of pay. This is an hourly rate that is normally determined by dividing the total wages...more

Christmas Turkey Tales

There once was a company by the name of Aeronca, Inc. which was engaged in the manufacture of aircraft components. Some of its employees were represented by Local 2535 of District Lodge 13 of the International Association of...more

"EU Banker Bonuses: Collision Avoided?"

On November 12, 2015, the European Banking Authority (EBA) published a follow-up report on the treatment of role-based allowances (Allowances) paid by banks to their staff. The EBA’s original, October 2014 report and opinion...more

More Lawsuits This Holiday Season?

Employers are acutely aware of the legal pitfalls that come with the holiday season. Office parties and alcohol are a potent recipe for bad judgment, and that bad judgment leads to harassment charges and lawsuits. Another...more

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

Government announces requirement for large employers to publish details of bonuses awarded to employees

This week, the Government announced a further measure aimed at eliminating gender pay inequality, requiring larger businesses with more than 250 employees to publish information regarding the bonuses awarded to their male and...more

Reducing Discretionary Bonus May Constitute Adverse Employment Action

According to the U.S. Court of Appeals for the Second Circuit, a District Court erred when it held that reducing an employee’s discretionary bonus cannot constitute an “adverse employment action” – a necessary element of a...more

Employee denied bonus payment on the basis of “somewhat draconian” termination provision

In the recent Ontario Superior Court of Justice decision, Kielb v National Money Mart Company, an employee was denied a bonus payment upon termination based on the provisions of the employment contract. In the decision,...more

Financial Services Industry: Be Aware of Proposed White Collar Overtime Regulations

The financial services area received a defeat earlier this year when the United States Supreme Court in March upheld the Department of Labor's (DOL) Administrative Interpretation concluding that mortgage loan officers do not...more

Based on Improper Appointment of Acting General Counsel to NLRB, D.C. Circuit Court of Appeals Voids Unfair Labor Practice Ruling

On August 7, 2015, the United States Court of Appeals for the District of Columbia held that former National Labor Relations Board (NLRB) Acting General Counsel Lafe Solomon's appointment violated the Federal Vacancies Reform...more

End-of-Year Bonuses? Possible Tax Pitfalls!

After stepping down from running the family oil business (see last month’s article), Jed Clampett runs Mama’s Fried Pies, his late wife Rose Ellen’s fried pie business. With business booming, Jed decides to hire Elly May as...more

Should Employers Be Allowed to Count Nondiscretionary Bonuses Toward the FLSA’s Minimum Salary Threshold? The DOL Wants Your...

As we reported last week in “A Call to Action: The Comment Period on the new Proposed Overtime Regulations Begins,” employers have a limited window of opportunity to submit comments in response to the proposed revisions to...more

“White Collar” Exemptions Defined and Delimited

On June 30, the Wage and Hour Division of the U.S. Department of Labor (DOL) issued its much-anticipated Notice of Proposed Rulemaking (NPRM) on “Defining and Delimiting the Exemptions for Executive, Administrative,...more

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