Can an Employer Demand You Repay a Bonus Received Before You Give Notice

My question involves labor and employment law for the state of: Massachusetts

I gave my two weeks recently and am still within that window. I work at a very very small company. I was so unhappy at my job and had felt that I was being underpaid and so I asked my boss for a raise in August. I asked for the raise to come as an addition to my monthly paycheck but my boss insisted that he provide the raise all at once in a lump sum of $4000+. I never signed anything ever regarding this bonus and it was basically just given to me so that I would stay at the company. I had no intentions of leaving at the time.

However, a month later I was offered a new job which doubles my salary and is exactly what I want to do. Everything has been fine at work and I felt we were on good terms until Friday afternoon where my boss claimed that I am in debt to him $3500 since I did not stay for the year and that bonus was meant for the year.

Do I owe him this money?

Also- if he thinks I am in debt to him I assume he is also not planning to pay me for the two weeks that I have worked since giving my notice. Is this legal? What are my options?

I really hate confrontation but this seems unavoidable.

Did you sign anything with regards to the bonus? If not, then tell him (politely, because you may need him for a reference someday) to pound sand.

As for not paying you, I think you're getting a bit ahead of yourself there. But IF he does not pay you for time you actually worked, you can file a complaint with the state. In MA, he also owes you for any vacation time you may have accrued but not used, also.

I disagree with cbg. This a 'very very small company' and very small companies don't exactly work like large companies where an employee has to sign a bonus agreement to receive a bonus. Very often a bonus is given in lieu of a raise for various payroll and accounting reasons. In this case, the bonus was for,

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it was basically just given to me so that I would stay at the company. I had no intentions of leaving at the time.

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And in essence, was a $76 per week raise.

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I did not stay for the year and that bonus was meant for the year.

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OP stayed only 2 weeks and the boss is asking her for $3,500 back. I suspect that the other $500 is the salary she earned in the last two weeks.

I see nothing illegal or unethical about this.

hi budwad,

are you suggesting that i owe my boss the bonus money AND i should not be paid for the past two weeks?

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hi cbg,

i am with you on this one, that is basically what i did. i never signed a contract of any kind with this company, even when starting. there is nothing i ever signed regarding payment, bonuses, two weeks notice, nothing. it was all done through conversation and negotiations were almost always made over the phone.

what should i do?

You asked for a raise and your boss gave you the bonus for the year because he wanted you to stay with the company and you are not, then I think you owe him the money. And since he is asking you for $3,500, as I said, he is using the other $500 to pay your salary for the two weeks you worked so you are being paid.

The bonus was not based on your performance but was to increase your yearly wage and keep you at the company. Divide the bonus by 52 weeks and you earned $152 of it and that is all.

hi budwad,

i make much more than $500 every two weeks.

also, in discussion with friends who work at other companies, it is commonplace for people not only to take a bonus and leave but to actually wait until their bonus has been given to them to give the two weeks notice.

again, i had no intention of leaving at the time the bonus was given to me, but i am under the belief that if an employer gives you a payment you should not have to return it, especially if i never signed anything.

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Quoting Boston75

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hi budwad,

i make much more than $500 every two weeks.

also, in discussion with friends who work at other companies, it is commonplace for people not only to take a bonus and leave but to actually wait until their bonus has been given to them to give the two weeks notice.

again, i had no intention of leaving at the time the bonus was given to me, but i am under the belief that if an employer gives you a payment you should not have to return it, especially if i never signed anything.

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If the bonus was for prior performance, then yes, I can see someone waiting for the payout before leaving the company. In your case, the bonus was looking forward not backwards.

And maybe you will also get a final paycheck and your boss is being generous.

And don't hang your hat on the fact that you did not sign any agreement. Neither did your boss. But ask yourself if there was a meeting of the minds here. OP, "I really need a raise." Boss, "OK, I will give you a lump sum of $4,000 for the year if you stay with the company." OP, "OK agreed."

Wait for others to give their opinions. I gave you mine.

I'm inclined to think along the lines as budwad is but I believe the actual statements by you and the employer during these negotiations are going to make a difference.

If if it was a payment to retain you for a year I believe you would be obligated to refund it but not just a pro rated share but the entire bonus.

Why you ask?

because it wasn't a raise where you would earn it but a single payment intending to purchase your commitment to stay a full year. You didn't stay so you would not have earned the bonus.
In other words is was a pre-payment of a bonus you would be due if you stayed a full year, which you obviously did not.

Why don't either of you show me the wage and hour law that permits the OP's employer to require for the money back, barring an agreement that it will be returned if he does not stay for a specified period of time?

Yes, please provide any kind of actual law which says I am obligated to return that money. Can you also show me any laws regarding payment for the "two weeks notice" period?

Thank you! I appreciate all the help.