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State Employment Law Articles
Article Index » california » employee benefits
Report Link California Supreme Court Upholds Group Profit-Sharing Incentive Compensation Plan.
Jackson Lewis LLP - August 28, 2007
In a 4 to 3 decision, the California Supreme Court upheld the legality of an employer's group, profit-based supplementary incentive compensation plan that took into account the employer's costs for workers' compensation and other expenses when computing the profit on which incentive payments were calculated.
Report Link Deduction of Workers Compensation Costs In Calculating Profits for Profit-Based Incentive Plan Does Not Violate California Labor Code (scroll down).
Ballard Rosenberg Golper & Savitt - August 15, 2007
In Prachasaisoradej v. Ralphs Grocery Co., the California Supreme Court ruled by a 4-3 vote that a profit sharing incentive plan based on a net profit calculation, which included deductions for workers compensation costs, cash and merchandise shortages and the costs of third party tort claims, did not violate Labor Code prohibitions against deducting such costs from employee wages.
Report Link Time for California Employers to Reevaluate Employee Bonus and Incentive Plans?
Jackson Lewis LLP - April 05, 2004
California employers now have one more thing to worry about: the validity of their bonus and incentive plans.

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