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Sharing The Wealth

The California Supreme Court recently ruled that employers may lawfully use net-profit-based incentive plans to compensate their employees.1 Employers may base profit-based bonus or incentive plans on the traditional measure of company profits, regardless of whether the employee is exempt. Before the ruling, an employer would have had to add workers’ comp and other business-related […]

Disclosure Rules Reveal Boom In Executive Perks

The first year of employer disclosures made under the new U.S. Securities Exchange Commission disclosure rules for executive compensation reveals an approximate threefold increase in the value of executive perks. Under the new rules, employers must disclose perks totaling $10,000 or more; previously, the disclosure threshold was $50,000. This causes concern for executives as many […]

Employee Exemptions: Appeals Court Limits the Administrative Exemption

The federal Fair Labor Standards Act (FLSA) and California law exempt certain administrative employees from overtime; the requirements for the administrative exemption under California law are stricter than the FLSA. To qualify for this exemption in California, an employee must: 1) earn a salary equal to at least twice the state minimum wage; 2) perform […]