A discretionary bonus based on both company and individual performance and offered as part of an employee compensation package is not a wage under State Labor Law, the Appellate Division, Third Department, has ruled.

The court’s ruling in Truelove v. Northeast Capital & Advisory Inc., No. 85063, is seemingly consistent with other appellate rulings and attempts to further clarify the nature of bonuses commonly paid by investment banking houses and law firms. Its decision distinguishes between earned commissions based entirely on an employee’s individual performance, and bonuses, like the one at issue here, that are predicated on company-wide efforts.

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