Results 1 to 10 of 10
  1. #1
    Join Date
    Nov 2013
    Posts
    3

    Default Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

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

    As part of my compensation plan I am paid a yearly bonus based on the growth of recognized gross profit margin of my team.

    Our calendar year closes 12/31 but it takes about 3 months for the accounts to close the books and to pay out bonuses.

    If I leave the company in January and therefore complete my obligation for the bonus, would I still be able to collect the bonus if it doesn't get paid until March?

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    That is entirely up to your employer and the exact wording of the compensation plan.

  3. #3
    Join Date
    Nov 2013
    Posts
    3

    Post Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    The comp plan does not state when it is to be paid. There is a policy for commissions that states commission payments are stopped upon date of termination. It does not mention bonuses which are separte from commissions. That makes sense since the sales are typically billed in milestones over a period of time and sales reps are paid commission on the actual milestone payments received.

    Since my bonus is based on actuall recognized revenue for the calendar year which is fixed and the company policy does not cover bonuses. Just because it take time to finalize the accounting seems as though I have met the obligation.

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    If you are looking for a law that states you MUST be paid the bonus, you're out of luck - there isn't one. If it is not addressed in your comp plan, then it will be up to your employer whether you receive it or not.

  5. #5
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    It entirely up to your employer whether you get paid the bonus after you quit.

    Here's the NJ statute on payment after termination:

    http://law.justia.com/codes/new-jers...ion-34-11-4.3/

    NJ excludes bonuses from the definition of wages:

    http://law.justia.com/codes/new-jers...ion-34-11-4.1/

    So if you are gone before the bonuses are payable, it wouldn't surprise me if the employer declines to pay you and there won't be anything you can do about it unless you have a bona fide written contract specifying that you get the bonus after termination. Apparently you don't have one.

    I suggest you keep your mouth shut about it. If you start asking questions you telegraph your intentions to your employer and that's never a good idea.

    You'll just have to wait and see.

  6. #6
    Join Date
    Nov 2013
    Posts
    3

    Default Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    Thank you for the responses and for the links.

  7. #7
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    Only a foolish employer would pay a bonus to someone who no longer works for them because a bonus is intended to be motivational for future good performance. It is discretionary. I've never heard of any employer doing such a thing.

  8. #8
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,043

    Default Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    We do, but only the individual goal achieved based portion of the bonus, and then only to people who are laid off through no fault of their own.

  9. #9
    Join Date
    Aug 2013
    Posts
    284

    Default Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    It is also pretty state law specific. In CA (for example) it is very hard legally to not pay commissions earned or other non-commission discretionary bonus payments. There are a bunch of court decisions that require this and CA-DLSE has formal rules backing it up. While Common Law is not crystal clear on this point, commissions and non-discretonary bonus payments are argualbly considered due wages even if terminated, so the lack of specific statutory/regulartory law does not necessarily prevent Common Law rememdies such as Small Claims Court and general court actions. On the other hand vanilla year end discretionary bonus payments are not subject to these rules. While it is not legally required for employers to have clean well written commission and bonus policies, it is arguably in everyone's interest that they do so. Preferably before any work is done.

  10. #10
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Can You Get an End of Year Bonus if You Quit in the New Year Before It's Paid

    Quote Quoting Bubba Jimmy
    View Post
    Only a foolish employer would pay a bonus to someone who no longer works for them because a bonus is intended to be motivational for future good performance. It is discretionary. I've never heard of any employer doing such a thing.
    I have.

    My former employer did it.

    I retired in August of 2006 with no thought about getting any bonus.

    The following April I got big surprise when the bonus check showed up in my bank account.

    1. Sponsored Links
       

Similar Threads

  1. Compensation and Overtime: Sales Commission Never Paid on Almost One Year
    By CheatedEmployee in forum Employment and Labor
    Replies: 1
    Last Post: 11-05-2011, 06:09 PM
  2. Replies: 8
    Last Post: 04-21-2010, 11:10 AM
  3. 17 Year Old Quit School
    By alero9 in forum Child Custody, Support and Visitation
    Replies: 7
    Last Post: 05-15-2009, 01:58 PM
  4. Student Loans: 25 Year Old Student Debt Was Paid
    By tnmcnulty in forum Debts and Collections
    Replies: 1
    Last Post: 02-03-2009, 12:21 PM
  5. Debt Collectors: 8 Year Old Utility Bill That I've Already Paid
    By kjk1975 in forum Debts and Collections
    Replies: 1
    Last Post: 02-02-2009, 01:42 PM
 
 
Sponsored Links

Legal Help, Information and Resources