Stroock Employment Newsletter
"Third Circuit: Prorating Production Bonus of Employee Who Took Leave Does Not Violate FMLA"
The United States Court of Appeals for the Third Circuit recently held that an employer did not violate the federal Family and Medical Leave Act, 29 U.S.C. §§ 2601 et seq. (“FMLA”), by reducing the amount of the employee’s bonus in proportion to the time he spent on FMLA leave. Robert Sommer v. The Vanguard Group, No. 05-4034 (3d Cir. Aug. 24, 2006). In reaching this conclusion, the Third Circuit became the first federal appellate court to consider when an employer’s incentive program falls into the category of a “production bonus” – which may be prorated – and when it should be categorized as an “absence of occurrence bonus” – which may not be prorated – for time spent on FMLA leave. Also in this Issue:
California Joins Growing List of States to Raise Minimum Wage; and
New York Adopts Law Requiring Unpaid Leave For Military Spouses.