Sally earned a 10 percent increase in her salary and received the entire increase at the beginning of the year, with the stipulation that she would not leave the company in that year. Five months later, she quit her job and went to work for a competitor. She had to return the 10 percent payment she had received because she had violated a rule for
A) lump-sum salary increase.
B) profit sharing.
C) commission.
D) employee benefit.
E) wage compensation.

Question

Quizplus · Accepted Answer

Sally had received a lump-sum salary increase at the beginning of the year, and the condition of not leaving the company was attached to it. Since she violated the condition by leaving the company five months later, she had to return the 10 percent payment she had received. Therefore, the rule violated in this scenario is related to the lump-sum salary increase.

Sally Earned a 10 Percent Increase in Her Salary and Received