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  • bonus pay

    I was hired 5 years ago in Wisconsin and was given a writen bonus schedule as to how I would be paid. I have made a good bonus each of these past 5 years and now the board of directors is changing my bonus schedule to the point where it will be impossible to make a bonus. Can this be done after we agreed on a written bonus schedule??? This was a deciding factor for me to leave my last job and come to work for this company and now it changes after 5 years.

  • #2
    Of course, the terms can change. If they could not, then you would never get a raise, either. And after 5 years of employment, the fact that this bonus schedule was what "enticed" you to come to this employer would not hold up as "detrimental reliance" in a court of law.

    Things change. Obviously, business is not doing as good as it was for the past 5 years.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      What would qualify as detrimental reliance???? The business is having a record year every year!!!

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      • #4
        Detrimental reliance is relying upon the promises or guarantees of your employer to your detriment. When you were hired I doubt that your employer guaranteed that your bonus arrangement would never be changed, therefore it's not at all likely that detrimental reliance applies here.

        The terms of your employment can be changed as your employer wishes. If you don't care for the changes, your recourse is to find a new position elsewhere with terms more to your liking.

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        • #5
          Detrimental reliance is when you give up something (like another job) to take a position based on certain promises that do not materialize, and therefore, you suffer damages because you "relied" on the promise. It has nothing to do with the economic status of the business.

          In any case, as I stated before, after 5 years, you couldn't claim that anyway. And if the employer wants to change the bonus plan, generally speaking, they can, outstanding business conditions or no.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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