Lawyers in California expect more employers to set up profit-based bonus plans for their workers after the California Supreme Court's ruling last month finding the plans legal. In 2003, a state appellate court had ruled that profit-based plans violated state law because they deducted certain expenses, such as workers' compensation, from employee wages. The state Supreme Court disagreed, finding that employers did not shift costs to employees by deducting expenses from revenues to determine profits.
September 20, 2007 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
Lawyers in California expect more employers to set up profit-based bonus plans for their workers after the state Supreme Court found them last month to be legal.
The legality of such plans, which grant compensation based on an employer’s profits, has remained in question since a California state appellate court ruling found them illegal in a separate case in 2003.
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