With which of the employee payment plans could an employee actually earn less than the market rate if the employer considered his or her performance to be unsatisfactory?
A) earnings-at-risk pay plan
B) merit pay plan
C) vested pay plan
D) incentive pay plan
E) none of the above because such a scenario is illegal

Question

Quizplus · Accepted Answer

An earnings-at-risk pay plan allows for a portion of an employee's pay to be at risk, meaning it can be reduced if performance is unsatisfactory, potentially leading to earnings below the market rate.

With Which of the Employee Payment Plans Could an Employee