Costco's Bonus Plan Legal: State Appeals Court

Law360, New York (January 23, 2009, 12:00 AM EST) -- A California state appeals court has ruled that Costco Wholesale Corp.'s method for calculating semiannual bonuses for its hourly employees is legal, reversing a decision by a lower court that partly sided with plaintiffs in a proposed class action against the company.

Judge James Marchiano of the Court of Appeal of California, First District, Division One, said in an order Wednesday that the megastore company did not violate state and federal overtime pay laws with its formula, which is based on hours worked.

Costco's bonuses are...
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