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Focus (Forum & Focus)

Sep. 8, 2007

Affirmed Incentive

Employment Column - By Diane Kimberlin - Could you be breaking the law by tying your employees' pay to company profits?

EMPLOYMENT COLUMN

By Diane Kimberlin

      On Aug. 23, the California Supreme Court issued its long-awaited decision in Prachasaisoradej v. Ralphs Grocery Co. Inc., 2007 Cal. LEXIS 8909. Deciding what it characterized as "a significant question of California wage law," the court held that Ralphs' profit-based incentive compensation plan ("ICP") was entirely lawful, and that the subtraction of expenses from revenues to ...

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