Tag Archives: earned

Second Circuit Affirms: Business Not Obligated to Pay $350,000 “Performance” Bonus to Prospective Employee Who Never Worked A Day

Last year, a Manhattan federal district judge reviewed a decision of a federal bankruptcy court and held that Lehman Brothers was not required to pay a $350,000 performance bonus referenced in the offer letter of a prospective employee who never provided services. In doing so, the Court observed that the Firm terminated the contractual relationship … Continue Reading

District Court Affirms: Business Not Obligated to Pay $350,000 Performance Bonus to Employee Who Never Worked a Day

The importance of detailed drafting of employment documents – particularly those calling for commissions, bonuses or other types of incentive compensation – was highlighted recently by a plaintiff’s claim that, as a conditional hire who never worked a day at now-defunct Lehman Brothers, the Bank’s rescinding of her employment offer triggered its obligation to pay … Continue Reading

New York State Court Reiterates That Commissions Are Not Wages Until Earned

Ensuring contracts and agreements reflect when incentive compensation – usually “commissions” – is earned is of paramount importance to New York employers who wish to maximize their rights, as evidenced by a recent decision from New York County Supreme Court Justice Ellen M. Coin.  Sherwin v Mestel & Co. N.Y., LLC, 2014 N.Y. Misc. LEXIS … Continue Reading

Clarifying Recent Legislative Amendment, Nebraska Supreme Court Addresses Entitlement To Commissions Under State Law, Contract

As we recently discussed, while the FLSA does not regulate the payment of incentive compensation (such as, for example, commissions and bonuses), many state laws do.  In Nebraska, an employee’s right to commissions is governed by a recently amended statute, Nebraska Revised Statute § 48-1229(4).  A new decision from that state’s highest court addresses an … Continue Reading

Illinois Court Rejects Attorney’s Claim For Alleged Unpaid Bonus

Similar to the wage-and-hour enforcement scheme of many other states including New York, in Illinois, the payment of incentive compensation is largely a matter of contract.  Entitlement to incentive compensation, in particular bonuses paid pursuant to a company policy taking into account many criteria, under the governing statute attaches when the terms of the contract … Continue Reading

Manhattan Appeals Court Rejects Senior Executive’s Claim for Alleged Unpaid Incentive Compensation

Pursuant to New York State Department of Labor guidance and New York case law, incentive compensation is not considered “wages” unless it is “earned.” See generally Truelove v. Northeast Capital & Advisory, Inc., 95 N.Y.2d 220, 225 (2000). Accordingly, disputes over an employee’s entitlement to incentive compensation in New York often turn on whether a particular bonus, … Continue Reading
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