Legal Question in Employment Law in California
Bonus Issue
I was recently laid off (due to a 'reduction in force'). My
employment contract stipulated a baseline bonus that
could be adjusted up or down based on performance
(objective and subjective criteria.) The performance
criteria themselves were never defined in writing. At my
termination, I was paid out a bonus a tenth of what was
called for by the contract with no explanation. I have
lengthy correspondence with my boss all of which
indicates good performance. There was no indication, in
writing or otherwise, of unsatisfactory performance. The
company is offering a severance package (also defined in
the original employment agreement) in consideration of
me waiving rights. The amount in question is $45,000, so
this is not an insignificant issue.
My questions are:
- Am I on solid ground to demand the full baseline?
- If they refuse to honor, what are my options?
- If one of those options is a lawsuit, what are the
potential damages over and above the remedy?
3 Answers from Attorneys
Re: Bonus Issue
Hello. It sounds like the performance bonus is discretionary, based on what you are saying. In other words, it seems that your employer may award bonuses based on performance, but nothing in your agreement suggests that the employer is obligated to pay out a bonus for satisfactory performance. Thus, not much can or should be done about the unpaid bonus. If I am missing something or misinterpreting your arrangement, please feel free to follow up.
Thanks,
Arkady Itkin
San Francisco Employment Lawyer
http://www.sanfranciscoemploymentlawfirm.com
Re: Bonus Issue
"Solid ground?" Not on your facts. You're entitled to whatever the policies state is payable, and under whatever conditions are specified, either in writing or provably followed with all such employees. If there is no written or 'customary rule' clarity, then you've simply got an argument. You can file suit if you want, but there are certainly no guarantees on outcome. Negotiate your best deal; hire experienced counsel to do so for you.
Re: Bonus Issue
The question is do you want to take whatever they give you, or otherwise, what do you have an arguable right to, and what should the final negotiated amount be. Your negotiating power is always increased when you have an attorney ready to enforce your rights, and almost always to your benefit. It sounds like it may be well worth the investment. Then, I imagine a deal would be struck. let me know if you want me.
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