Can a company pay profit-sharing to some and not to other employees who are also full-time?

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Can a company pay profit-sharing to some and not to other employees who are also full-time?

Asked on January 27, 2016 under Employment Labor Law, Pennsylvania

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Does company policy or possibly a union agreement or employment contract prohibit this action? Does this treatment constitute some form of actionablble discrimination? If not then it is legal. The fact is that not all employees need be treated the same or even fairly. So unless the employees who did not receive the profit sharing were left out due to their race, religion, age, disability nationality, gender, etc. is was legal. The fact is that in an "at will" em=oyment relationship, a company can set the terms and conditons of the workplace much as it sees fit. This includes who does or doesn't particiate in a profit sharing plan.


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