Tag Archives: Employee Bonus

When is a “Bonus” Really a “Commission”? A Helpful Reminder to Ensure Your Pay Plans Comply with State Laws

Commission
In the past, we have highlighted some of the legal risks of employing commission-based employees, as well as some of the methods for limiting those risks.  A new court decision out of Illinois provides a good reminder that vaguely described policies and restrictive payment rules can expose employers to large liabilities.… Continue reading this entry

Straight Talk About Incentive Compensation

Compensation
Many employers offer compensation packages that include a mix of both base compensation (guaranteed wages or salary) and  incentive compensation (at-risk variable compensation). While base pay tends to be relatively straightforward, incentive compensation presents unique challenges and planning opportunities.… Continue reading this entry

So You Want to Give Your Employee a Bonus?

Salary
There are many reasons employers give bonuses to employees. Bonuses are a motivator.  They effectively reward past contributions.  Bonuses also allow employers to provide additional compensation to the workforce on a one-time basis without baking in wage increases and thus increasing the costs of wage-based benefits such as vacation.  Sometimes, employers have an exceptional year … Continue reading this entry