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salesman
11-23-2004, 11:13 AM
I worked for a company for the first 9 months of the year, completing all of my sales goals. We are paid all salary, plus a bonus if the company meets its goals (of which you must meet your own goals). I left the company to pursue another opportunity (non-competing industry).

My boss asked me to "enter all reliable anticipated sales" for the last three months of the year (months I would not be employed) so that the region would get credit for the sales that I had generated and would close in my absence.

I understand that the company then met all of its goals, and the employees are due to get about a 15% bonus in December (for fiscal year ending Sept. 30). I asked about getting 75% of the bonus considering that I was there for 75% of the year but had completed 100% of the goals for the year. I maintained that the company actually gained from me leaving because they would be excused from paying me salary for the last three months, but had all the benefit of me being there the whole year considering that the company was "sold out" for the rest of the year, with factories at capacity.

They did not replace my position with anyone because of the situation of being "sold out", and they anticipate hiring someone possibly after January 1.

It seems quite reasonable to make a claim for 75% of the 15% bonus. Does anyone have any concrete experience with this type of claim?

unionwayne
11-23-2004, 05:47 PM
I worked for a company for the first 9 months of the year, completing all of my sales goals. We are paid all salary, plus a bonus if the company meets its goals (of which you must meet your own goals). I left the company to pursue another opportunity (non-competing industry).

My boss asked me to "enter all reliable anticipated sales" for the last three months of the year (months I would not be employed) so that the region would get credit for the sales that I had generated and would close in my absence.

I understand that the company then met all of its goals, and the employees are due to get about a 15% bonus in December (for fiscal year ending Sept. 30). I asked about getting 75% of the bonus considering that I was there for 75% of the year but had completed 100% of the goals for the year. I maintained that the company actually gained from me leaving because they would be excused from paying me salary for the last three months, but had all the benefit of me being there the whole year considering that the company was "sold out" for the rest of the year, with factories at capacity.

They did not replace my position with anyone because of the situation of being "sold out", and they anticipate hiring someone possibly after January 1.

It seems quite reasonable to make a claim for 75% of the 15% bonus. Does anyone have any concrete experience with this type of claim?

It is very reasonable for you to expect that you be paid 75% of the bonus. It seems that you earned it. However, unless you have a contract, I do not believe that you are legally entitled to the bonus. The employer can give you the bonus or not at their discretion.

-Wayne

LConnell
11-24-2004, 03:27 AM
I agree with the preceeding post...there is no legal basis for receiving a bonus. The great majority of plans include a statement that you must remain employed as of the date of distribution in order to receive the bonus. This is to encourage persons to stay with the company.

salesman
11-24-2004, 10:01 AM
These are the exact type of responses that are basically no help at all. Of course "policy" of the bonus plan (written by the company, to favor the company) would have language in it that would discourage people from making claims. So what? Policies are not laws, and very often they are in direct conflict with laws. Often, they are designed to be a reference for the company to show employes as a deliberate attempts to discourage employees from pursuing claims.

So if you have advice that is based on citing the company policy, please don't bother to respond. What I am looking for is anyone who has an real understanding of the law or historical judgments about unpaid bonuses upon a voluntary leaving of a company.

LConnell
11-24-2004, 01:16 PM
I understand that you want to see something in black and white but employment law is never that simple. From a wage payment standpoint, if it is not prohibited, it is legal. Though the other person responding to your post and I sometimes disagree on our union philosophies, I would say that he and I are very knowledgable about employment law.

There are some states that have made rulings on the issue of bonus payments. I don't know what state you are in so I can provide more exact information. However, I am attaching a link to a California ruling as an FYI: http://www.dir.ca.gov/dlse/opinions/1987-06-03.pdf

Let me know if you have any other questions.

unionwayne
11-24-2004, 02:16 PM
These are the exact type of responses that are basically no help at all. Of course "policy" of the bonus plan (written by the company, to favor the company) would have language in it that would discourage people from making claims. So what? Policies are not laws, and very often they are in direct conflict with laws. Often, they are designed to be a reference for the company to show employes as a deliberate attempts to discourage employees from pursuing claims.

So if you have advice that is based on citing the company policy, please don't bother to respond. What I am looking for is anyone who has an real understanding of the law or historical judgments about unpaid bonuses upon a voluntary leaving of a company.

Salesman:

You have answered your own question. Obviously, there is no such law.

-Wayne

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