Opinion ID: 223097
Heading Depth: 4
Heading Rank: 1

Heading: Termination based on recruitment numbers

Text: Relators allege that employees were disciplined, demoted, or terminated on the basis of their recruitment numbers. This does not state a violation of the incentive compensation ban. Even as broadly construed, the HEA does not prohibit any and all employment-related decisions on the basis of recruitment numbers; it prohibits only a particular type of incentive compensation. Thus, adverse employment actions, including termination, on the basis of recruitment numbers remain permissible under the statute's terms. See U.S. ex rel. Bott v. Silicon Valley Colleges, 262 Fed.Appx. 810, 812 (9th Cir.2008) (holding that [t]he decision to fire an employee is not covered by the Act because termination is not a prohibited `commission, bonus, or other incentive payment.' (citing 20 U.S.C. § 1094(a)(20))). [3] The Complaint's allegation that Corinthian imposes adverse employment consequences on the basis of recruitment quotas does not, therefore, state a violation of the HEA incentive compensation ban, and also does not support the claim that a false statement was made.