Also known as:salaries · salarium · wages · compensation
Written by attorneys · grounded in primary & secondary sources — see below
Compensation paid to an employee or professional for services rendered, typically at fixed intervals on a yearly or periodic basis rather than hourly.
Sources & Authorities· 40 primary sources
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
How it applies
Common Examples
6
Salary Deprivation Claim
Sebastian Santos, a federal employee, had his salary payments halted by agency action without any hearing or opportunity to contest the decision. He sued under the Fifth Amendment claiming the government deprived him of property without due process. The court examined whether the salary constituted protected property requiring just compensation or procedural safeguards before termination.
Director Compensation Fix
Sterling Manufacturing's board voted to set the annual salary for its outside directors at a fixed amount after reviewing market data. The articles and bylaws contained no contrary provision limiting this authority. The decision allowed the corporation to retain experienced directors without shareholder approval of each salary adjustment.
Judge Family Advice
Judge Sylvia Santos drafted estate planning documents for her sibling without charging any fee or salary. The judicial conduct rules permitted this limited assistance to family members. She declined to appear in court on the matter to avoid any compensated representation.
Third-Party Fee Consent
Samuel Soto's client agreed in writing that a third-party insurer would pay the lawyer's salary for handling the personal injury case. The lawyer confirmed that the arrangement would not affect independent judgment or the attorney-client relationship. Informed consent satisfied the professional conduct requirements for accepting outside compensation.
Lost Salary Damages
Sabrina Shah proved at trial that the defendant's negligence caused her to miss six months of work and lose her regular salary. The jury awarded compensatory damages measured by the wages she would have earned during that period. The award restored her to the financial position she occupied before the injury.
Servitude Modification Award
Sapphire Holdings owned a servitude restricting development on neighboring land owned by Seth Shapiro. A subsequent zoning change made the original purpose impossible to achieve. The court modified the servitude and ordered Sapphire Holdings to pay Shapiro compensation measured by the resulting reduction in property value.
Common questions
Frequently Asked
6
How does salary differ from wages under employment law?+
Salary refers to fixed periodic compensation for professional or semiprofessional services paid on a yearly or other regular basis. Wages are typically hourly payments subject to overtime rules under the Fair Labor Standards Act. Salaried positions are generally exempt from overtime requirements but remain subject to state wage regulations.
Supporting sources
Can a board set director salaries without shareholder approval?+
Under the Model Business Corporation Act, the board may fix director compensation unless the articles or bylaws provide otherwise. This authority allows the board to adjust salaries to retain qualified directors. Shareholder approval is not required absent a contrary charter provision.
May a judge receive salary for legal work performed for family members?+
A judge may provide uncompensated legal advice and document drafting to family members but is prohibited from serving as their lawyer in any forum for pay. The rule preserves judicial impartiality by barring compensated representation. Pro se activity remains permitted in all matters.
When may a lawyer accept salary from a third party for client representation?+
A lawyer may accept third-party compensation only if the client gives informed consent, the arrangement does not interfere with professional judgment, and confidentiality is preserved. The client must understand the source of payment and any potential conflicts. These safeguards protect the attorney-client relationship.
How are lost salary amounts calculated in tort damages?+
Compensatory damages include amounts awarded to restore a plaintiff for harm, including lost salary caused by the defendant's conduct. The award measures the wages the plaintiff would have earned but for the injury. Courts require proof of the salary loss and its causal connection to the harm.
When may a court award compensation upon modifying a servitude?+
A court may modify or terminate a servitude when changed circumstances make its original purpose impossible to accomplish. Compensation may be awarded to beneficiaries for resulting harm as a condition of the modification. This equitable remedy balances the interests of all parties affected by the change.
of teachers, and other "tangible" factors. Our decision, therefore, cannot turn on merely a comparison of these tangible factors in the Negro and white schools involved in each of the…
. The trial court upheld the law, but the Appellate Division reversed. The New York Court of Appeals reversed the Appellate Division and upheld the law. Held: The restrictions imposed by…
were in existence well before that time. A Utah statute of that sort enacted in 1896 was involved in our decision in Holden v. Hardy , 169 U. S. 366 (1898), and other States followed…
compensation
for invasion of a legally protected interest may be entirely appropriate even if no substantial deterrent effects on future official lawlessness might be thought to result. Bivens, after…
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