Legal Question in Employment Law in California

Salary Bonus

Are employers allowed to change your bonus structure/amount at the end of the year without giving you a written notice? My new manager informed me during my reivew of what my bonus will be and it is different from what I was quoted when I first accepted this job. This was due to a miscommunication between my old and new manager. Do they have to honor what I was given when i first accepted this job?


Asked on 1/07/08, 1:17 pm

1 Answer from Attorneys
Ryan P. McClure The Law Offices of Ryan P. McClure

Re: Salary Bonus

Yes, generally bonuses are considered discretionary and fluctuate based on company profitability. They would only have to honor the original bonus structure if it was guaranteed or there was some other language that made it something other than a discretionary bonus. Most companies state that the bonus "could be as high as X%", but this also means at can be as low as 0. Check the paperwork that they gave you upon hiring.

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Answered on 1/20/08, 11:29 am


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