Legal Question in Business Law in New York

Re: Bonus paid , then taken back , legal?

Think of it this way. Would you prefer to keep your bonus money and lose your job sooner, or would you prefer to keep your job longer and forego the bonus money?

Money, as the saying goes, does not grow on trees, and banks have sunk deep into a huge economic black hole from which it will take them -- and the rest of us -- years to emerge. The bank is tightening its belt, as well it should. This is good business practice. Your employer is under absolutely no obligation to pay out bonus money, especially in this current economy. That they tried to do so was nice of them; that they are forced to rescind the transaction is simply economic reality.

The economy stinks at this moment. Banks, even large international banks, feel this more than do many businesses, since they are in the center of the economic maelstrom. The rescinding of bonus payments is one way of keeping the bank afloat for another day, thereby keeping its employees working for another day.

Yes, it is legal for your employer to reverse a bonus payment transaction, assuming that they do this across the board (no favoritism).

Yes, you have to give the money back.

You have no recourse except to quit your job.

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