docking pay/bonus for judgement

vrs

A salaried manager recevied an annual bonus based on profits of his division. One of his employees sues for discrimination and either wins or agrees to a negotiated settlement. In PA can such money be deducted from his bonus?

ritaanz

I do not understand your question. Are you asking about the money that the company paid to the employee in the discrimination case? And.....are you asking if the employee's supervisor/manager gets that amount deducted from his bonus?

davids

As I understand your question, a manager is given a bonus based on profits. An employee in that division sues for discrimination and wins; so now you want to take back some of the bonus. Are you taking the bonus back as a form of discipline for the manager engaging in discrimination; or are you rationalizing that since you have to pay the discrinimation judgement, profits are actually less than originally thought?

Either way, I think you are leaving yourself open to a lawsuit from the manager if you try taking back the bonus. On the other hand, if you believe the manager was guilty of discriminating against the employee, you could discipline the manager (hopefully you have both a non-discrimination policy and a disciplinary policy). The discipline could include a reduction in salary (if consistent with your policy).