Define: Red Circle

How is Red Circle defined in a legal contract?

• Red Circle means an employee who is not eligible for pay increases until adjustments increase their pay rate to the top step of the range that goes beyond their current pay rate.
  Seen in 3 SEC filings
• Red Circle means an employee whose pay rate is maintained for a maximum of two years, and if a new structure does not increase their pay rate, they will experience a decrease to the maximum pay rate of the new grade if it continues to be higher than the new grade maximum.
  Seen in 2 SEC filings
• Red Circle means an employee whose salary is currently above the highest rate of their job grade and is moved to a salary chart as a result of this agreement, shall be placed at the highest step within the job grade except if such placement results in a pay rate increase greater than twenty percent, they will be placed at the next lowest step that allows for an increase of twenty percent or less.
  Seen in 2 SEC filings
• Red Circle means an employee who is paid at a higher rate than the pay range for their position, called a ““red circle”” rate. They receive fifty percent of any negotiated wage increase until the current rate and the ““red circle”” rate intersect.
  Seen in 2 SEC filings
• Red Circle means a frozen salary rate for an employee that surpasses their pertinent position in the company’s classification structure.
  Seen in 1 SEC filing
• Red Circle means an employee’s base pay that exceeds the rate for their job role or classification, and the base pay is defined as a ““red circle”” rate. However, the employee will only be eligible for general wage increases that do not exceed one percent of their base pay.
  Seen in 1 SEC filing

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for ‘Definitions of red circle’ yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Red Circle means an employee’s frozen salary rate and ineligible for pay raise until specific adjustments occur.

Relevant Contract Types

• Employment Contract
• Labor Agreement
• Executive Compensation Agreement

Relevant Circumstances

• When a company undergoes structural changes affecting salary bands/ranges
• When an employee’s salary exceeds the range for their role.

Relevant Sectors

• Human Resources
• Business Management
• Labor Relations

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Genie Definition 2

• Red Circle means an employee's pay exceeding the top rate for their role, triggering a controlled increase adjustment.

Relevant Contract Types

• Compensation Agreement
• Salary Adjustment Agreement
• Change in Control Agreement

Relevant Circumstances

• Salary structuring and banding processes
• Hierarchy or job role changes

Relevant Sectors

• Compensation Management
• Enterprise Planning
• Business Administration

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