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Bonus Payout After Resigning California

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  • jake53
    replied
    Looks clear to me.

    The employers plan states "All members of the sales force must be actively employed, or on active payroll, on the payment date in order to be eligible for any bonus/award under the Base Incentive Plan, or Recognition, pr Spiff Award programs."

    If you were an active employee on the payment date, you should receive the payment. If not, then no payment is due.

    Leave a comment:


  • Megan Ross Hutchins
    replied
    I stand by my previous advice- I doubt you will get it, but it can't hurt to file with the DLSE and try.
    Last edited by Megan Ross Hutchins; 09-29-2006, 08:28 AM. Reason: appearently pirates have taken over my brain, since I usually do not use "me" when I mean "my." Argh, mateys!

    Leave a comment:


  • sammy3
    replied
    Thank you to everyone who has replied to my question(s). Below are the actual eligibility requirements for my company's 2006 base incentive plan taken directly from the company website:

    Eligibility requirements apply to all field sales bonus eligible positions. Field sales bonus eligible positions will subsequently be referred to as the sales force in this document.
    All members of the sales force must be actively employed, or on active payroll, on the payment date in order to be eligible for any bonus/award under the Base Incentive Plan, or Recognition, pr Spiff Award programs. Active employment will be considered actual presence at work or on any approved time away from work as follows: Vacation, Holiday Credit, Disability Leave (including maternity), Funeral/Bereavement Time, Jury Duty, Military Reservist Training, and while on an approved Unpaid Family/Medical Leave of Absence. If you are on a personal leave of absence, however, your bonus is payable only after you have been back to work for three months (or a period equal to your personal leave, if less). If you are not actively employed, or on active payroll, on the payment date for any reason, as determined by PPD, you will not be eligible for and will not have earned a bonus, incentive payment and/or award under any of the abovereferenced programs.
    Note: If you give notice to resign from your position and your notice period would carry you through the payment date, you will be eligible to receive the bonus for the program period. The notice period may not exceed two weeks and you must be available to work during that period.


    Below are the trimester dates when bonus is earned. The payout is always 2 1/2 months after the end of the trimester. The bonus period in question is Trimester 2 (May-August) and the payout is the middle of November.

    Payouts will be based on trimester achievement of product performance measures unless otherwise noted in your specific sales force bonus plan:
    Timing:
    Trimester 1: January 1 – April 30
    Trimester 2: May 1 – August 31
    Trimester 3: September 1 – December 31
    Data Months:
    Trimester 1: January 2006 – April 2006
    Trimester 2: May 2006 – August 2006
    Trimester 3: September 2006 – December 2006


    What I'm not clear on is why my company won't pay me the bonus I've already earned unless I'm an employee as of the payout date. It is not my fault that it takes them 2 1/2 months to pay it out. No mention is made as to why it takes them 2 1/2 months to pay out bonus so I'm not sure if they are trying to ensure people don't quit beforehand or whether it actually takes 2 1/2 months to calculate final bonus figures. Is the company policy regarding bonus payout so cut and dried that they really don't have to pay me a dime unless I'm an active employee? I can email a copy of the entire bonus plan requirements if you would like to see it, but the above represents the entire section regarding bonus.

    Thanks for your help!!!

    Leave a comment:


  • DAW
    replied
    I agree with the other answers. Also, it depends a lot on how the bonus plan is written. My last employer had formal descretionary bonus plans that amoung other things depended on the annual financial statement being signed off by the outside auditors and the board of directors approving the bonus pool (but not the individual bonus payments). The payments (if any) were made 45 days after fiscal year end lose, and most employees who terminated in the last 6 months of the fiscal year were potentially eligible, meaning a possible 7.5 month wait. We had several former employees file claims based on CA's 24/72 hour payout rule. CA-DLSE rules in our favor because there was clearly a formal plan with conditional wages due employees and the plan conditions could not be meet earlier then when we were already making payments.

    Details is often everything with these things. On the other hand, lack of formal plans can be risky for employers.

    Leave a comment:


  • Megan Ross Hutchins
    replied
    Sammy, I am hesitant to give you an opinion one way or the other without seeing your bonus plan, but you can file a claim with the DLSE and let them help you with this for free. http://www.dir.ca.gov/dlse/HowToFileWageClaim.htm

    Leave a comment:


  • turbowray
    replied
    I'm so sorry, we are not allowed to give referrals on this site, I would just look in the yellow pages under the type of lawyer you are looking for (employer/employee lawyer). 1-800-843-9053, is the County Bar Lawyer Refferal Service. Good luck to you!

    Leave a comment:


  • sammy3
    replied
    Does anyone know of any attorneys in Southern California that I could contact about this question?

    Thank you!

    Leave a comment:


  • sammy3
    replied
    Just curious to see if anyone can shed anymore light on this problem...

    Thanks for your help!!!

    Leave a comment:


  • sammy3
    replied
    Originally posted by turbowray
    Please wait for Megan or Michael to give thier opinion, the may know of a loophole of somekind, no promises, but don't give up hope unless the say you can not get it despite the delay in payment for the bonus.
    Thanks for the pep talk! I hope there is a loophole...

    Leave a comment:


  • turbowray
    replied
    Please wait for Megan or Michael to give thier opinion, the may know of a loophole of somekind, no promises, but don't give up hope unless the say you can not get it despite the delay in payment for the bonus.

    Leave a comment:


  • sammy3
    replied
    Thanks so much for your help. It still doesn't seem right that I actually earned the money (for which the company has already received the profits from) and yet I can't collect because they choose to wait 3 months before paying it out instead of paying it sooner...

    Leave a comment:


  • Pattymd
    replied
    I found this. See paragraph 35.2.
    http://www.dir.ca.gov/dlse/DLSEManua...enfcmanual.pdf

    However, I have heard conflicting information from some California employment attorneys. Megan, Michael?

    Leave a comment:


  • sammy3
    started a topic Bonus Payout After Resigning California

    Bonus Payout After Resigning California

    I work as a sales rep (in California) for a large corporation that is headquartered in Illinois, but has a regional office in California. I earn a base salary and a trimester bonus that is paid out 3 months after the trimester has ended. I was recently offered a job with another company that starts in the middle of October. Here's my problem: I have earned my trimester bonus at my current company (the trimester includes May, June, July, and August.), which is based on sales performance. However, the payout for this bonus will not occur until November. The company's policy is that you have to be an active employee on the payout date (November) in order to collect the bonus for the previous trimester. I have heard that in California, my company will have to pay me my bonus because it has already been earned and is considered wages. Is this true? It definitely seems fair since I have already fulfilled my end of the bargain by selling successfully during those 4 months. Does anyone know if this is true and what the legal source is?

    Thanks for your help!
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