Employers Get Windfall In Calif. Incentive Pay Ruling

Law360, New York (August 24, 2007, 12:00 AM EDT) -- The California Supreme Court handed down a victory for employers on Thursday, ruling that companies can keep incentive pay plans that include calculations of workers compensation costs.

In a 4-3 reversal of a state appeals court decision, the court ruled that a bonus plan based on a calculation of store profits that included a workers compensation cost deduction did not violate provisions of a California law that requires employers to bear business costs that are outside of a worker's control.

The case was brought by a...
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