GUARANTEED ANNUAL WAGE PLAN
guaranteed annual wage plan.Labor law. A wage-payment method in which the employer
agrees either to pay employees a predetermined minimum sum each year or to provide a minimum
number of hours of employment each year. • A wide variety of guaranteed annual wage plans are
used. For example, an employer may agree to pay employees wages for each week in the year,
even though work may not be available at certain times of the year. The purpose of such a plan is
to provide a stable labor force year-round. [Blacks Law 8th]