Legal Question in Employment Law in California
When is an employer required to issue profit sharing?
Part of my employment with Company X included a substantial profit share agreement, to be paid in cash annually. This is the second year the company turned a profit and I have yet to see profit share checks from 2002. I left employment with them on 1/1/2003, and had an agreement that they would pay me the profit share for 2002.
When is a company required to pay the profit share? Last year I waited until Sept. 2002 before I finally got an answer that there was no profit for 2001!
3 Answers from Attorneys
Re: When is an employer required to issue profit sharing?
You proably have a claim for unpaid or unreasonably delayed payment of wages/benefits, plus penalties and interest, which can be brought by filing a Claim with the Labor Commissioner.
If the amount owed is substantial enough for you to hire an attorney, contact me to discuss.
Re: When is an employer required to issue profit sharing?
if the payment period is not stipulated in your employment agreement, then the court would deem your employer would have "a reasonable time period" to pay you your share of the profits. reaonable time is subject to interpretation based on industry standards or your company's particular performance period historically in paying out its profit sharing obligations. if you can supply me with more facts as well as what is still owed to you monetarily by the company, i may be able to further assist you.
Re: When is an employer required to issue profit sharing?
The company should have defined when profit sharing distributions are made, perhaps within x amount of days after the end of their fiscal year. If you were never provided such information you should inquire with the company. If you need further assistance and are in the area, please do not hesitate to contact our office.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
