State of Iowa
My father-in-law works for a roofing contractor that is a c-corp, and also serves on the corp's board of directors. His job duties include preparing bids on roofing contracts in the area. He is paid a base hourly wage, and also receives 10% of profit on all the jobs that the company gets based on the bids he prepares. He has not signed a written contract with his employer detailing this, but does have a written agreement detailing this from when he started work there, however it was not signed by either party.
His employer is now trying to get him to sign a statement saying that any payments he receives above his base wage are a bonus, and are paid at the discretion of the company. As you can imagine he is not pleased with this, however we are unsure of what to do.
Even if they call it a bonus, but it's paid based as a percentage of bids that he has won for the company, and he has to do something to get it (prepare winning bids), wouldn't that make it compensation, regardless of what they call it? Even if he did sign an agreement saying it was a bonus, would it still be considered de facto to be compensation legally?
Thank you,
Kevin
My father-in-law works for a roofing contractor that is a c-corp, and also serves on the corp's board of directors. His job duties include preparing bids on roofing contracts in the area. He is paid a base hourly wage, and also receives 10% of profit on all the jobs that the company gets based on the bids he prepares. He has not signed a written contract with his employer detailing this, but does have a written agreement detailing this from when he started work there, however it was not signed by either party.
His employer is now trying to get him to sign a statement saying that any payments he receives above his base wage are a bonus, and are paid at the discretion of the company. As you can imagine he is not pleased with this, however we are unsure of what to do.
Even if they call it a bonus, but it's paid based as a percentage of bids that he has won for the company, and he has to do something to get it (prepare winning bids), wouldn't that make it compensation, regardless of what they call it? Even if he did sign an agreement saying it was a bonus, would it still be considered de facto to be compensation legally?
Thank you,
Kevin