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HOT TOPICS
Discretionary bonus plan
Employer, according to Fair Labor Standards Act, may implement a discretionary bonus. Section 548.3(e), allows the employer to enter into an agreement with the employee to provide a bonus which is paid at the sole discretion of the employer to be paid. Even though the U.S. Wage & Hour Division argues that the consistency of payment affects the discretionary aspect of the bonus since employees expect the bonus each month. It is my opinion that the consistency of payment has nothing to do with payment no more than a check stub. As long as the employer does not included the bonus with the regular rate of pay and the payment or the amount is at the sole discretion of the employer within the eligibility criteria at or near the end of the period. The employer does not establish a promise of expectation to the employee. Even a non-discretionary bonus with eligibility criteria does not have to be paid if the criterion for earning the bonus is not met. However, with a non-discretionary bonus, the bonus must be added to the regular wages earned during the period the bonus is paid.
What Employers are covered by the FMLA Act?
The FMLA applies to all: 1. Public Agencies, including state, local and federal employers, local education agencies (schools), and 2. Private-sector employers who employed 50 or more employees in 20 or more workweeks in the current or preceding calendar year and who are engaged in commerce or in any industry or activity affecting commerce — including joint employers and successors of covered employers.
At-Will Presumption
In Wyoming as in other states, the issue arises when a handbook is created with certain pre-employment rights. As is the case in many states, the at-will employment status is in a state of expansion and development. These include developments within Wyoming government and business in connection with the interpretation of and effect given to employment handbooks or manuals. The traditional interpretation of the at-will employment status is reviewed from two perspectives; either the employer or the employee may terminate the relationship at any time, for any reason or for no reason at all. The business handbook offering pre-employment rights are considered as a guide for the employee. It is believed that creating a handbook and application disclaimer forms a written at-will employment agreement. Most handbooks create terms and conditions of employment with no promise of job security in an at-will state. A handbook that creates an implied employment for a definite duration or contains the requirement that just cause, such as progressive discipline or grievance procedures, must exists before an employee may be terminated.
HANDBOOK OR CONTRACT
Perhaps the most important reason for an employer to create a handbook is to document the employer's expectations. Most employees want to be successful; they are eager to know what is expected of them and how they can improve. A good handbook will describe expected performance and how to get a promotion or raise, in addition to clarifying the employer's expectations regarding
work hours, dress, and sick or vacation leaves.
The process of creating a handbook also helps employers improve their leadership, first by thinking through which policies are useful and practical in their
specific operation. Then after concrete policies are established, employers
can better manage employees because objectives for each position have been
examined, benefits have been considered and perhaps retooled, and personnel
policies are in place before contentious issues arise. It is at this point that the conflict between the employer and employee occurs.
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