Are You Still Entited to a Bonus After Resignation
My question involves labor and employment law for the state of: California
I worked for a Silicon Valley firm for four years. During three of those years it was common practice to receive a bonus after completing a major project, and not tied to annual reviews. During the years 2013 through 2015, I received bonus payments within the quarter that the project completed. In 2016, I completed two massive projects that both ended in Q4 2016 (calendar year).
In 2017, based on prior received bonuses, I had every expectation that I would be (shortly) receiving my bonus for the completed projects. Our annual reviews were done in January 2017 with the results announced March 10 2017. I received a job offer from another company that needed me to start prior to March 10 2017. Rather than lose the job opportunity and waste the first company's time and money diddling around doing nothing while waiting for the review, I gave notice; my final day at the company in question was Feb 17 2017.
I was informed that the bonus policy had recently changed, and since I was not employed on 3/10/17 I was not eligible for the bonus for the work completed in 2016. My former boss confirmed that I had a substantial bonus that was due to be awarded to me on 3/10.
Do I have a leg to stand on to pursue this bonus?
Re: Are You Still Entited to a Bonus After Resignation
An "expectation" isn't a policy. If in fact there was a formal, written policy and it was changed, the question of whether or not you would be entitled to a bonus will depend upon the exact language of the policy and when, in relation to your resignation, the policy was changed. To determine if you had any post-resignation rights to a bonus, you will need to have the actual, written bonus policies reviewed by a lawyer.
Re: Are You Still Entited to a Bonus After Resignation
It is, in fact, quite common and legal in most states (including California, and I have reason to know that) for a bonus to be only payable to those who are still on the payroll on the day it was awarded. I agree that you should have the bonus agreement looked at by a lawyer to see if it's enforceable after the fact, but such a policy is generally SOP.