Thursday, March 19, 2009

Money isn't everything, Mortimer.

We seem to be paying some of our employees an awful lot of money.....
Who would have thought that the Connecticut Wage Act would get so much attention in the national press? The Act requires the "recovery of double damages and attorneys fees when wages are improperly withheld and the employer’s refusal to pay wages lacks a good faith basis.”Basically, that is the rational behind AIG's claim that it has to give $165 million in bonuses to the top managers in its Financial Products division headquartered in Wilton, Connecticut. AIG worries that the company would be subject to “double damages” if it was sued for not fulfilling its contract to pay the bonus dough.
Considering AIG received $170 billion in federal bailout money, some people got a little irked. Which begs the question. What would be considered a "good faith basis" not to pay the bonuses? If my boss withheld a bonus to me for driving the company into the ground, I would think that would establish enough of a good faith basis. AIG reported this month that it lost $61.7 billion in the fourth quarter of last year, the largest corporate loss in history.

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