Idaho Supreme Court upholds compensation agreement

Typically this time of year, clients reach out with questions related to bonuses, commissions, and alternative compensation. Of course, in 2021, questions have arisen throughout the year, particularly from employers with federal contracts and health care employers faced with enforcing looming vaccine mandates. Faced with the potential of termination for a portion of their workforce who wouldn’t comply with vaccine mandates, employers have long been considering the impact on bonuses.

Background

Generally, regardless of the circumstances, all employment law practitioners in Idaho (and in most states) will respond to these payroll inquiries by asking to review a copy of the written policy or agreement providing for any compensation beyond base salary.

Fortunately, in Idaho, legal precedent developed under the Idaho Wage Claim Act provides a fairly clear answer. You can be even more confident your legal negotiations with employees related to compensation will be upheld given a recent decision by the Idaho Supreme Court. (Incidentally, the Justice penning the decision, Hon. Colleen D. Zahn, was a regular contributor to Idaho Employment Law Letter prior to 2011.)

Wage claim

The Idaho Supreme Court had the opportunity to revisit and reaffirm its previous decisions on employment contracts controlling compensation above and beyond a base salary or hourly wage. The previous decisions primarily instructed that the terms of the agreement will govern if they are correctly drafted.