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?


Asked on 11/22/08, 1:56 pm

3 Answers from Attorneys

Arkady Itkin Law Office of Arkady Itkin

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

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Answered on 11/25/08, 3:39 am
Terry A. Nelson Nelson & Lawless

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.

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Answered on 11/24/08, 5:38 pm
Daniel Bakondi The Law Office of Daniel Bakondi

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.

IMPORTANT:

No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

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Answered on 11/24/08, 5:47 pm


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