Legal Question in Employment Law in California

Company not paying bonus

In 01/00, I joined a software company earning $100,000+/yr. 1 year & 5 days later, I gave notice. My offer letter reads ''your performance & salary will be reviewed upon completion of six months of employment, & again upon completion of your first year of employment. You will be entitled to a 30% bonus per annum, payable after each six-month review.'' My manager verbally told me half of my bonus would be based on individual performance & half based on company performance. After the 1st 6 months, the company gave me a 3 out of 10 on my personal performance & an 8 on company performance so that I earned 55% of half of 30%. I received no salary adjustment.

When I resigned, I got 0% of the remaining bonus. I asked my new manager of 1 month & she said that no bonus would be issued because the company was not paying them. I asked for this in writing & she emailed me that I won't receive a bonus because the company is not paying them & that my performance did not earn one. Altho I had no performance issues verbally or in writing during the last 6 months, I was only an adequate employee. In 12/00, I reviewed an employee who received a 7 based on company performance.

Please advise. Thanks


Asked on 1/30/01, 2:29 am

1 Answer from Attorneys

Stuart Kaye Law Offices of Stuart M. Kaye

Re: Company not paying bonus

If you were promised a bonus based upon your performance then you have a viable claim for unpaid wages. I would suggest that you file a claim with your local office of the state labor commissioner. Good luck.

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Answered on 3/15/01, 9:42 am


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