• Third Circuit Rules That Employers May Generally Prorate "Productivity" Bonuses To Employees Returning From FMLA Leave
  • August 30, 2006
  • Law Firm: Proskauer Rose LLP - New York Office
  • In Sommer v. The Vanguard Group, 2006 WL 2441970 (3d Cir. August 24, 2006), the U.S. Court of Appeals for the Third Circuit addressed the issue of prorating bonuses for employees who return to work after taking a leave of absence under the Family and Medical Leave Act ("FMLA"). It held that bonuses that reward production (such as those tied to number of hours worked) may generally be prorated, but those that reward "the absence of an occurrence" (such as those given for avoiding accidents or having perfect attendance) may not be prorated.