The tax-exempt North Carolina High School Athletic Association apparently violated University of North Carolina policy when it paid bonuses to its managers. The association administers high school sports throughout the state.
It was founded by UNC in 1912, but has operated largely independently since the 1940s. The university system provides loose oversight, and it generally adheres to UNC policies concerning pay and benefits.
But the state auditor has found that the association’s practice of paying seniority and incentive bonuses violates university policy and must stop.
From 1999 to 2008, the association paid out $239,133 in bonuses to managers and $7,820 to nonmanagement staff. The employees won’t have to return the money.
Note: In light of perceived Wall Street excesses, bonuses are a touchy subject. If you plan to issue bonuses, make sure your policies (and any outside funding sources, such as government agencies) permit you to do so.
Bonus plans must not discriminate among employees based on age, race, religion, ethnicity, gender or disability. Before dispensing any bonuses, analyze the proposed distribution for disparate impact on any protected class of employee.
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