Questions About Incentive Based Pay
Policies regarding incentives vary from one company to the other
. One would feel very happy and satisfied if one earns incentives or commissions for the effort that one has put in at work. Below are a few questions that have been answered regarding incentive based pay:Q. If an employee is unwell and informs that he/she would not be able to turn up to work for a day; can this employee be denied commission or incentive pay?
Commission or incentive is a voluntary bonus that is paid by the employer, but it is not mandatory for the employer to pay it. Further, this is paid for the job that has been finished and the employer may not deny paying it just because the employee did not turn up to work due to an illness. However, it is up to the employer to pay it or not.
Q. In order for an employee to receive an incentive pay that is given at the end of each quarter; is it required that he/she be present in office on the day it is paid? If the employee is away on LOA, can the employer delay the payment?
Incentive is given on the basis of the jobs finished in the previous quarter. Therefore, it may not be required for the employee to be present at office on the day it is given.
Q. Would incentive be paid even if an employee quits the company prior to the payment?
Incentive is paid on the basis of the jobs completed in a given time period. In the event that an employee has completed all jobs that were assigned and if this was completed as per the requirement; then he/she should be eligible to receive incentive payment (even if he/she quits prior to the scheduled payment date). The employee may file a petition for wage violation if the incentive payment is denied. In some states, the employee would be paid all amounts due (including the incentive payment) until the date of termination; if the termination was initiated by the employer. As company policies vary, one would need to handle it on a case to case basis.
Q. Is it possible for an employer to change the incentive plan that was already agreed upon and back date it too?
An employer may change an incentive plan that was agreed upon previously, but the plan should take effect for future payments. However, the change cannot be back dated. Incentive is paid for the job that has been finished in the past and as the plan payments were already decided; the employee would need to be paid as per the previously decided plan. Any change to the plan should take effect for future payments. In the event that the employer does not pay the incentive due and the incentive is a part of the employees wages; then the employee may file a petition with the Department of Labor - Wage and Hour division. However, if the unpaid amount is treated as bonus; then the employee may file a petition for breach of contract.
Q. Consider a situation where the incentive payments of an employee are based on the sales goals. This employee has met the sales target, but is not being paid incentive. This is due to an error in the companys report. The employee has provided proof of achieving the target, but the employer is denying paying incentive. Is this acceptable?
One should be paid incentive if he/she has earned it due to their performance; even if there is an error in the report. It would be acceptable if the employer agrees to pay it on a later date. However, if the employer rejects the employees plea to pay the incentive; then the employee may approach the company HR or the higher management. Even after this if one is unable to get the incentive payment; then a petition may be filed in the court.
It is important that one gets paid for the work that has been done. Incentives motivate one to work hard. You may ask an employment lawyer if you have any questions regarding incentives and a href="http://www.justanswer.com/topics-incentive-pay/">incentive based pay.
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