Legal Question in Employment Law in California
Termination without bonus
I was recently layed off from a part time position at a company that I had worked at for over ten years. Last July, the company started a new long term bonus structure that was funded by a cut in commisions.
This bonus was to be paid by the beginning of the year and was pushed back to January 23rd. However, on the fifteenth of January, most part time associates were terminated before the bonus was paid. The criteria of who was cut was never made clear to the associates and we were given the option to change to full time status. Can they deny our claim to the bonus since we are longer employees? Do I have any recourse on wrongful termination since the criteria for staying employed was not based on written guidelines. Is there any obligation for severence from a company after a long length of employment?
1 Answer from Attorneys
Re: Termination without bonus
Though a true bonus, by definition, is discretionary, it may take the form of a contractual obligation if there is fixed criteria that causes the bonus to have been earned by your performance. The bonus plan must be analyzed by an attorney to determine your rights. You may have to go to federal court under a law known as ERISA. The answer to your termination question depends on whether you were an "at-will" employee. There are many discussions on at-will employment on this web site. The short answer is, if you were an at-will employee, the employer may use any criteria it wants to make layoff decisions, as long as the reason is not an illegal one. Finally, there is no law that requires employers to pay severance. Whether to pay severance is up to the discretion of the employer unless there is a fixed severance plan.
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