An Unexpected Employer-Friendly Decision In Calif.

Law360, New York (September 6, 2007, 12:00 AM EDT) -- In Prachasaisoradej v. Ralphs Grocery Company Inc., No. S128576, the California Supreme Court granted an unexpected victory to employers who do business in the state and who wish to incentivize and reward their employees through bonuses based on net profits.

In a lawsuit brought by a former employee of Ralphs supermarkets, the state supreme court, in a 4-3 decision, reversed a court of appeals ruling and held that Ralphs' bonus plan, which was based on store profits and included a calculation for workers’ compensation costs, did...
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