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  1. #1
    Join Date
    Sep 2011
    Posts
    10

    Default Can You Still Get a Bonus After You Resign

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

    I was verbally told by my employer that I'd get a bonus for the profit our department made from last year (2014). No mention of bonus was ever mentioned in my offer letter nor did I sign any documents indicating a bonus structure. My employer explained to me verbally that bonus will be included in the paycheck in 4 quarters (see below).

    The bonus amount and payout date is divided into 4 quarters, with the last quarter payout date being January 2016. Again, this is for 2014 performance. If I've earned bonus for my last year's performance, shouldn't I be given the bonus in full this year?

    Bonus payout date for last year's performance (2014):
    04/2015 - 40% (I did receive this one already)
    07/2015 - 20%
    10/2015 - 20%
    01/2016 - 20%

    My question is:

    I will be voluntarily leaving the workplace. Can my employer decline the rest of my earned bonus from last year in order to keep me "hungry" as an employee/so that I don't quit?

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

    Default Re: Can You Still Get a Bonus After You Resign

    Yes, your employer CAN decline the rest of your bonus, and may. No law exists that mandates he pay it out under the conditions you've described. Whether you can legally combat that will depend on whether you can convince a court that a binding contract to pay the bonus exists.

    Whether he WILL decline the rest of your bonus is unknown.

  3. #3
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Can You Still Get a Bonus After You Resign

    Quote Quoting boba7523
    View Post
    Can my employer decline the rest of my earned bonus from last year in order to keep me "hungry" as an employee/so that I don't quit?
    Declining to pay you the bonus will have absolutely nothing to do with keeping you "hungry."

  4. #4
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Can You Still Get a Bonus After You Resign

    Oversimplified : a bonus once it is earned is a form of wages in CA and vests and is subject to CAs wage payment laws

  5. #5
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Can You Still Get a Bonus After You Resign

    Let me just follow up a bit.

    At a former employer, we had a formal plan that applied to almost all employees with a very few exceptions (unfortunately I was one of the exceptions ) for a bonus payout. It was made once a year. We had thirteen offices in ten states, including California. Our rule was that you had to be employed on the day of the payout to get the bonus. That rule held up in nine of the ten states, INCLUDING CALIFORNIA, and in the one state where we were sued for the bonus and lost, it was SOLELY because under that particular state's laws, the wording of our agreement did not meet the state-specific definition of a discretional bonus. It was made quite clear to us that if our agreement wording was very slightly different, we would not have had to pay out the bonus in that state either.

    Now, that was with a formal, written plan with signatures on both sides. You have an unwritten verbal agreement that doesn't sound as if it has much meat to it and which he is not likely to remember the same way you do. You tell me if the state of California is going to force him to pay you based on your recollection of what was said.

  6. #6
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Can You Still Get a Bonus After You Resign

    Quote Quoting HRinDEVON
    View Post
    Oversimplified : a bonus once it is earned is a form of wages in CA and vests and is subject to CAs wage payment laws
    You ought to know better than to make a statement like that without a citation to back it up.

  7. #7
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Can You Still Get a Bonus After You Resign

    OP hasn't posted any prior employer rule about being employed on pay out date ....it matters...

    See CA Div of Labor Standards Enforcement Policies and Intrepretation Manual sections 35.2 and 35.3 for some discussions on point.

    Cbg is sure to be correct that IF OPs employer had such a clear rule in place it would tilt the equation as to not being there for a person who left voluntarily before the payout date.

    I'm not in CA...but IF there is an ambiguity created by sloppy employer docuements or lack of docuementation, the employEE might just get the benefit of the doubt?

  8. #8
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Can You Still Get a Bonus After You Resign

    Once again you're back with the, Well it might happen that...without any backup.

    From what the OP says he has nothing at all on paper. Not even an agreement that there be a bonus in the first place.

  9. #9
    Join Date
    Jun 2015
    Posts
    988

    Default Re: Can You Still Get a Bonus After You Resign

    Actual partial payment on 4/15 of 40%

  10. #10
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Can You Still Get a Bonus After You Resign

    Which proves nothing with regards to agreements for future.

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