Legal Question in Business Law in Minnesota

Bonus Compensation - Does it have to be paid?
My employer has a bonus compensation plan that is based upon the profitability of the business unit that you work for.

For the plan year ending in 2003 the business unit that I am in was to get a large percentage of the profits.

The company as a whole did not do that well for the year 2003 though, so bonus compensation payout was delayed indefinitly, but ''personnaly gaurenteed'' to evenentually be paid out.

The year 2004 has now passed, and the bonus compensation from 2003 has still not been paid. A plan has been put in place now for the year 2005 to pay a percentage of the bonus compensation from 2003 each month during the year of 2005. With this plan, approximatly half of the bonus compensation from 2003 will be paid during the year of 2005, with the other half still outstanding at the end of the year 2005.

Do I have any legal rights of getting this bonus compensation from 2003 paid in full if I were to leave the company?

This seems like the carrot that never ends.

Asked on 12/24/04, 7:33 am

David Anderson Anderson Business Law LLC

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Re: Bonus Compensation - Does it have to be paid?

It would be helpful to review the language of the "plan" and any memos or bulletins about the "personally guaranteed" bonus for 2003.

Usually bonuses are discretionary unless governed by contract, which can arise from written communications or memos.

I'd be happy to look over what you have received from the company to determine your rights.

Answered on 12/24/04, 8:45 am

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