Legal Question in Employment Law in Maryland
Bonus Pay at termination
As part of my pay package, I am subject to an annual bonus. Our fiscal year ended 1/31/04 and the bonus criteria has been met. I am now considering leaving the company and am wondering if they are required to pay me my bonus even if I leave before the checks are normally delivered.
3 Answers from Attorneys
Re: Bonus Pay at termination/Wage Collection
My understanding is that Maryland Wage Payment and Collection Law � 3-505 provides, in part, that "...each employer shall pay an employee...all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not been terminated." Payment by your employer should be made on or before the day on which you would have been paid your bonus.
Re: Bonus Pay at termination
Payment of the bonus lies upon the terms of your employment contract or agreement. Determination of the bonus may be subject to various accounting matters. Contact an attorney.
Re: Bonus Pay at termination
If the contract says you get the bonus if you meet certain criteria adn you do, then you are entitled to the bonus by contract and wage law, even if you leave, unless there is some contractual provision to the contrary.
You are correct to be concerned though. Many employers will not pay "extra" money when an employee leaves, mistakenly believing that non-salary money is somehow discretionary. So, if you can secure payment early, or otherwise wait for it, that is the practical thing to do.
If not, try to get the employer to confirm in writing that the bonus was earned and is due you. For example, you could send an email to HR or your supervisor asking if the bonus was earned and when it will be paid. If you have that, you can use it later if you have to demand payment.
If you find that you need an attorney, please call for a free consultation to review your options.
Good luck.
Jeff Sheldon
Jeffrey L. Sheldon, Esquire
The Sheldon Law Firm
17804 St. Lucia Isle Drive
Tampa, FL 33647
813.986.7580
(f) 813.986.7489
(Admitted in Fl., MD, D.C., and Pa.)
http://www.SheldonLawFirm.com
Disclaimer: This posting does not and is not intended to constitute legal advice. It is not confidential, nor is it privileged, and it does not create an attorney-client relationship. Please consult with an attorney for advice specific to the facts of your case.