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Does my employer have to pay me my bonus even if I was laid off?
Anonymous3 views3 answers
If my offer letter states that I will be awarded an annual bonus, but provides no further specifications, does that deem it to be a discretionary bonus? I was just notified that I was being laid off on December 14, but will be an employee through the end of this calendar year (and am still working for the firm I might add). Bonuses are to be paid on the 21st, however, I was informed I would not be receiving one as a result of being laid off, though I still worked the entirety of the year. Am I in any way entitled to receive that bonus?
Have an attorney attempt to negotiate a severance package on your behalf.
Herbert Tan, Esq.
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Eligibility for the annual bonus should be further defined somewhere, some how. Perhaps in the offer letter, perhaps in company policies, or maybe even in practice. You will probably need an attorney to review the details in far more depth than can be accomplished here on this public forum.
There may also be issues related to the timing of the lay off vis-a-vis the bonus. Again, something to discuss with an attorney.
To find a plaintiffs employment attorney in California, please go to the web site of the California Employment Lawyers Association (CELA). CELA is the largest and most influential bar association in the state for attorneys who represent working people. The web site is www.cela.org. Click on "Find a CELA Member" and you can search by location and practice area. Many CELA attorneys represent clients throughout the state.
I hope you can resolve your situation and wish you the best.
Bonuses, unlike salary, are more a creature of contract than of statutory right. Whether or not you are entitled to receive your bonus will depend on the contract you entered into with your employer regarding your right to receive the bonus. Some employers have a written compensation plan that lays out specifically how an employee qualifies for a bonus. If your company has such a plan, consult it. Some companies are far less documented. In those cases, to prove your right to a bonus you will have to prove that your "agreement" allows for you to get your bonus, and to do so you will have to use any letters, memos or other writings, along with any oral testimony available to you to prove up the terms of your bonus agreement.
Good luck to you.
