News & Analysis as of

Bonuses Contract Terms

Gray Reed

Most-Favored-Nations Clause Costs Lessee

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This “most-favored-nations” clause in three oil and gas leases on land in LaSalle County, Texas, was at issue in EP Energy E&P Co., L.P. v. Storey Minerals, Ltd. ...more

Littler

Clawback clauses in the Netherlands can be a risky business

Littler on

"Clawback clauses" state that employees must refund all or part of their variable bonus if it is determined that the bonus should not have been paid out in the first place. ...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

Carlton Fields

Court Denies Petition to Vacate Arbitration Award Based on Judicial Estoppel

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This case arises out of plaintiff John B. Napoleone’s failure to repay a sign-on bonus of $100,000 to his former employer, defendant S2K Financial LLC, under the terms of his employment agreement. S2K commenced an arbitration...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

Carlton Fields

U.S. District Court for the District of Maryland Confirms Arbitration Award

Carlton Fields on

Plaintiff David Balch entered into a contract with Oracle Corp. to close a large government contract known as the “Mega Deal.” After closing the Mega Deal, Balch received a bonus that was less than he believed he was owed....more

Littler

Littler Global Guide - France - Q3 2019

Littler on

A decree, dated July 26, 2019, has set a principle of modulation of employers’ contribution to the mandatory unemployment scheme (between 3 and 5.05%) depending on the number of contract terminations. All terminations count,...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

Jones Day

The Tricky Issue of Repayment of a Bonus under German Law

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Some employers like the concept that employees must repay a bonus if the employee is no longer employed as of a certain date. This may be permissible in Germany, but only under narrow circumstances. On June 27, 2018, the...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

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

Littler

Germany: Court Holds Payment and Amount of Discretionary Bonuses are Subject to Judicial Review

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On August 3, 2016, Germany's Federal Labor Court ruled that while the payment of employee bonuses and their amounts are at the discretion of the employer, they are subject to full judicial review. Under this reinterpretation...more

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