Friday, January 4th, 2008...10:02 am
9th Cir: Incentive Payments to College Employees
The 9th Circuit has affirmed judgment in favor of a college that allegedly made recruiting-related incentive payments to employees in violation of the Higher Education Act.
The Court held:
Relators have not pled with sufficient particularity any facts indicating that the periodic salary adjustments violated the Higher Education Act or its associated regulations. The Act does not prohibit salary reviews generally, but rather bars the payment of a “commission, bonus, or other incentive payment” solely on the basis of recruitment success. 20 U.S.C. § 1094(a)(20). Relators have not pled specific facts supporting the inference that salary reviews were performed solely on the basis of recruiting success. Nor have relators pled with sufficient particularity any facts demonstrating that the salary review system was merely a sham mechanism for funneling improper incentive pay.
U.S. v. Silicon Valley Colleges, 2007 WL 59364 (9th Cir. Jan. 4, 2008)(unpub.)
Leave a Reply
You must be logged in to post a comment.