Legal Question in Business Law in California

bonus compensation law

Am I entitled to receive a bonus payout for a period that I fully completed as an employee, if at the actual time of the bonus payout I am no longer employed and have since resigned?


Asked on 4/29/08, 12:56 pm

2 Answers from Attorneys

Robert Davies The Davies Law Firm, P.A.

Re: bonus compensation law

you probably are entitled to it, depends on the exact wording of the contract.

Call me if you would like an attorney to assist.

Good luck to you.

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Answered on 4/29/08, 1:16 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: bonus compensation law

In California, an employee cannot be stripped of pay or benefits actually earned as part of his or her employment compensation package agreed upon with the employer, whether by express contract or well-understood policy. All this would argue in favor of the employee being entitled to the bonus. However, the employer may be able to argue that a bonus is discretionary additional pay given out based on a post-performance-of-services decision, and that who gets paid and how much is its' sole option.

For a case in which the employee won based on the court finding the employees had an expectation of a bonus while working, see Hill v. Kaiser Aetna (1982) 130 Cal.App. 3d 188; on the other hand, a year earlier the employee lost on rather similar facts in Lucian v. All States Trucking Co. (1981) 116 Cal.App.3d 972.

I assume the employment was in California and that California law would apply. If New Jersey law applies, please note that it might be somewhat different and the California cases can't be relied upon.

Also note that I have not studied the two cited California cases in any detail nor do I have sufficient facts about yoyr former employer's bonus policies to be able to predict whether your situation would more resemble that of the guy who won, or the guy who lost.

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Answered on 4/29/08, 2:02 pm


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