Where is "vested" defined in Colorado re: bonus cash, not sales commissions, retirement-account balances, stock options or other forms of compensation.

I was on an annual bonus plan at SoftwareCO, a publicly traded company based in California, for 3 of 4 quarters in 2008. In Q4 my department switched divisions internally, which switched my bonus to a quarterly plan. SoftwareCO laid off about 1/3rd of its headcount in 4Q2008, including me. My layoff date was 12/17. No quarterly bonus is being paid to that division for Q4.

What's in play is the annual bonus pro-rated across the prior 3 quarters.

I was based in Colorado the whole time and my home office here was explicitly mentioned in the offer letter / agreement that I signed in 2007. (The same agreement requires arbitration of disputes in California.)

SoftwareCO staties via email that, because I'm not an employee on March 31 2009, when annum-based bonuses are paid, that I'm not eligible for any bonus. As near as I can tell, the Colorado Wage Act was written partly to protect (former) employees from exactly that stance.

I believe a bonus payment for me is earned, determinable and unpaid for those 3 quarters under the Colorado Wage Act. What I haven't found yet is a definition of, or any case law that speaks to, "vested."

SoftwareCO is proposing a severance payment for release of approximately 50% of the pre-tax determinable value of the earned, unpaid bonus.

How do I figure out "vested"?
Will a California arbitrator probably apply Colorado law in this matter?

Why are you dealing with California at all? You performed the services in Colorado, right?

Because I'm ignorant, which is why I posted.

All services were performed either in Colorado, where I was based, or on the client's site wherever that was.

Basically, "vested" when it comes to bonuses/commissions is whatever the bonus agreement (or other contract) determines as to when it is "earned". Have you contacted the CO Dept of Labor and filed a claim for unpaid wages?

Thanks.

The written document is silent on that point. SoftwareCO will probably assert absolute discretion in determining vesting. They've already asserted no bonus to be paid because I'm not an employee as of 3/31/2009.

Haven't filed a claim. Taking the severance, if that's what I do, would release any such claim.

There is a regular responder here that is much more an expert in Colorado wage and hour law than I. Hopefully he should be here soon.

pattymd,

Thanks. :)

While we're waiting.... Is Colorado case law accessible on-line by the public (e.g. me)? I wonder if there's a way (for the computer) to search for cases under the Colorado Wage Act?

No idea.

I'm also bumping this for mlane.

My info is more or less the same as Patty's info in post #4. Payment of commissions at termination Colorado: Commissions may be considered wages if they are earned at the time of termination of employment. Commissions are earned if they are vested and determinable at the time of separation pursuant to the agreement between the employer and the employee. Therefore, commissions that are earned must be paid in accordance with the time limitations provided in the Wage Claim Act. C.R.S. statute 8-4-101 et seq. and Hofer v. Polly Little Realtors, Inc. 543 P.2d 114 (1975)

Mlane may have more to add.