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  1. #1
    Join Date
    Feb 2012
    Posts
    2

    Default Bonus Payment Without Contract After Resignation

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

    Hi,
    I am new here and really need some advice regarding my bonus payout. I was employed for 3 years with a software consulting company and my salary was paid as 85% of my billing rate. In order to establish a stable income for bank loan, we decided to pay my salary as Base Salary and remaining as bonus. We did not execute a written contract but the contract was verbal and employer kept their verbal promise by paying my salary as 85% of my billing rate for 3 years. During the last six months, my employer did not pay additional bonus on the excuse of not having sufficient funds. I voluntarily resigned 2 weeks back, assuming that I will get paid my additional bonus when my employer has funds. Now my employer claims that the bonus was discretionary and they will not pay the bonus since I am no longer employed with them.

    The bonus is a significant amount and in truth, it is really my salary and I am very upset with the behavior of my employer. I should have insisted on a written contract but in absence of a written contract, what should I do?

    Can the payments made in the last 3 years considered as evidence for a assumed contract? Should I file a complaint with Dept of Labor or Should I consult a attorney specializing in employment law? are there any chances of me getting my unpaid salary?

    Thanks in advance, hope someone will help me figure out the next steps

    Joy

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Bonus Payment Without Contract After Resignation

    If you don't have a contract that calls for a bonus, a bonus being by definition an amount you receive above and beyond your rate of pay, and have nothing else in writing to substantiate your position that this was really part of your salary, unless your employer admits that it owes the money you're going to have difficulty establishing that your employer is obligated to pay bonuses. Your employer is taking the position that the bonuses were discretionary - what evidence do you have to support your position that they were not?

    Consulting a lawyer with the full details couldn't hurt.

  3. #3
    Join Date
    Feb 2012
    Posts
    2

    Default Re: Bonus Payment Without Contract After Resignation

    Thanks for the responses. Since I am in California, I figured out that the employment laws are different from most states, to my surprise I found that CA DLSE treats contract differently. Specifically for my case, section 35.4.3 implies that if I can prove continued payment of bonus with some objective criteria then this can be regarded as Implied contract. This gives me hope, now its time to get legal help through an attorney.

    Implied Contract For Bonus. The regular payment of the bonus in past years may
    ripen into an implied contract for compensation in the absence of a specific contract.
    (D.L.S.E. v. Transpacific Transportation Co.(1979) 88 Cal.App.3d 823; cf. Simon v. R iblet
    Tramway Co., 8 Wash.App. 289, 505 P.2d 1291, 66 A.L.R.3d 1069, cert. den. 414 U.S.
    975, 94 S.Ct. 28 9, 38 L.E d.2d 218 ). Howev er, in order to be actionable, there must be
    some objective criteria upon which the bonus is based.

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