Legal Question in Employment Law in Pennsylvania
Bonuses
I work for a major financial institution in PA and we are responible for reaching a certain revenue goal and upon reaching that goal we are paid a bonus for any amount over that goal based upon a percentage. The ''bonus'' was generally paid the month following the goal being reached. Our incentive plan (the bonus) was changed at the beginning of the year and was not implemented until March of that year. So, because of the delay in the implementation of the plan, the ''bonus'' is now not paid until two months following the goal being reached. Would it be legal for the employer to withhold a ''bonus'' that was earned in March from an employee who is terminating their employment at the end of April just because of their(employer) delay in implementing the plan?
1 Answer from Attorneys
Re: Bonuses
Generally a bonus is just that, a bonus, something that an employer uses as an incentive to induce employees to work harder.
In general, a bonus plan does not have to be set up. If an employer sets one up they can set up their own standards, and institue them when they are ready.
That the bonuses were "generally" paid at a particular time is not determinative of anything. If was generally paid at a particular time than I assume it was sometimes paid at other times.
That being said, should you receive your bonus?. It depends. What are the terms of the plan? Did you have to produce a certain amount of business to receive the bonus and did you produce that amount of business? Did you have to work under the plan for a certain minimum period of time and did you work for that minimum period of time? If you stopped working at some point during the program, did you lose your right to any bonus?, etc.
If according to the terms of the plan you still feel you are eligible than you should pursue your employer for that part of the bonus that you believe you have earned.
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