Supreme Court Rules Ralph's Grocery Co. Inc.'s Incentive Compensation Plan Lawful

"Affirmed Incentive," Los Angeles Daily Journal

In a recent Supreme Court ruling, the court determined that Ralphs Grocery Co. Inc.'s profit-based incentive compensation plan is completely lawful. This ruling, says Diane Kimberlin, "... returns greater flexibility to employers, and should greatly diminish fears that profit-based bonus plans will make them targets of class action litigation." Ms. Kimberlin also states that, "Employers will want to consult their legal counsel if they are considering changes to an incentive compensation plan, especially one that is not a 'supplement' to the employees' regular compensation, or is not based on the 'collective' efforts of employees."