COMPENSATION

compensation (kom-p<<schwa>>n-say-sh<<schwa>>n), n.1. Remuneration and other benefits received in return for services rendered; esp., salary or wages. [Cases: Master and Servant  68–72.5. C.J.S. Employer–Employee Relationship §§ 132–133, 138–153, 155–156, 163–172,174–176.] “Compensation consists of wages and benefits in return for services. It is payment for work. If the work contracted for is not done, there is no obligation to pay. [Compensation] includes wages, stock option plans, profit-sharing, commissions, bonuses, golden parachutes, vacation, sick pay, medical benefits, disability, leaves of absence, and expense reimbursement.” Kurt H. Decker & H. Thomas Felix II, Drafting and Revising Employment Contracts § 3.17, at 68 (1991). 2. Payment of damages, or any other act that a court orders to be done by a person who has caused injury to another. • In theory, compensation makes the injured person whole. [Cases: Damages 15.C.J.S Damages §§         21–22.]             3.SETOFF(2).   —  compensatory, (k<<schwa>>m-pen-s<<schwa>>-tor-ee),  compensational (kom-p<<schwa>>n-say-sh<<schwa>>-n<<schwa>>l), adj. accrued compensation.Remuneration that has been earned but not yet paid. adequate compensation.See just compensation. deferred compensation. 1. Payment for work performed, to be paid in the future or when some future event occurs. [Cases: Master and Servant  72. C.J.S. Employer–Employee Relationship §§ 146–152, 155, 175.] 2. An employee’s earnings that are taxed when received or distributed rather than when earned, such as contributions to a qualified pension or profit-sharing plan. just compensation.Under the Fifth Amendment, a payment by the government for property it has taken under eminent domain — usu. the property’s fair market value, so that the owner is theoretically no worse off after the taking. — Also termed adequate compensation; due compensation; land damages. [Cases: Eminent Domain  122–150. C.J.S. Eminent Domain §§ 71–72, 86, 116–141, 144–146, 148, 151, 153, 155–156, 159–170, 172–177.]unemployment compensation.Compensation paid at regular intervals by a state agency to an unemployed person, esp. one who has been laid off. [Cases: Social Security and Public Welfare 251. C.J.S. Social Security and Public Welfare §§ 146–150, 211.] unreasonable compensation.Tax. Compensation that is not deductible as a business expense 855 because the com-pensation is out of proportion to the services actually rendered or because it is in excess of statutorily defined limits. IRC (26 USCA) § 162. [Cases: Internal Revenue  3323. C.J.S. Internal Revenue § 162.] [Blacks Law 8th]