Legal Question in Employment Law in California
payment of bonus
I am considering giving my two week notice to my employer. I am supposed to recieve a bonus on the 21st. The bonus is for the previous quarter which ended last month. If I quit before the 21st can my employer refuse to give me the bonus? The corporate office is in another state. Does California law apply or the laws of the state in which the company is based? I also have vacation time accrued. Do I get paid for that?
2 Answers from Attorneys
Re: payment of bonus
Today's the 13th. If the bonus is substantial, it would seem foolish to quit a week early.
Re: payment of bonus
Generally speaking, employers are required to pay wages earned by an employee at the time of termination; bonuses are considered wages and are due to former employees when it would normally be paid. Unless the bonus policy has an express provision noting an employee forfeits an earned bonus upon termination, it must be paid. Even if there is a forfeiture provision, there is a split of court authority as to whether this is consciounable, so further inquiry would be warranted. However, as noted, the better advice is to avoid the issue entirely and stay until you are paid.