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Demotion in California California

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  • Demotion in California California

    I currently hold a position with client relationship responsibilities and my compensation package includes a salary and bonus. Through no fault of my own - and my employer agrees - it's been requested that I am removed as the client relationship manager. My company is willing to place me in another position internally which does not allow for a bonus option. Do they have any responsibility to add the bonus, or a portion of the bonus deemed easily attainable, to my salary in the new position? Or do I have no recourse to recover any future bonus I would have earned if I were able to stay in that position?

  • #2
    That is going to depend entirely on the terms of the bonus agreement. This is not directly addressed by law.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      There is no question they will pay my bonus earned already for 2008, it is moving forward in 2009 that I am concerned about. Since the position I am essentially being "demoted" to does not have a bonus plan, I would be straight salary. It seems to me they should be in some way required to maintain my total compensation, even if it means increasing my salary to cover the "attainable" portion of a bonus. However, they are simply proposing maintaining my salary and I would unfortunately no longer be eligible for a bonus in my new position....therefore my overall compensation will decrease.

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      • #4
        It seems to me they should be in some way required to maintain my total compensation, even if it means increasing my salary to cover the "attainable" portion of a bonus.

        There is no law that requires them to do so. Unless you have a bona fide, legally enforceable contract that specifically states that your compensation can never be reduced, they are no more obligated under the law to maintain your current salary than they are obligated under the law to raise it.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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