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Bonus Pay Massachusetts

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  • Bonus Pay Massachusetts

    Was wondering what the laws are for bonus pay. I was hired 6 years ago with a 10% bonus pay at the end of the year if certain objectives were met. No issues in the past. During Jan/2013 the company decided to alter the objectives for 2012. Here was the basic structure

    2012 agreed to payout
    30% based on personal performance
    20% based on division performance
    50% based on overall corporate performance.

    They now want to change the division payout to a 50% weigh and decrease the corporate to 20%. Can you guess that the division had zero profit for 2012 and as a global company we did great. My gripe is we went through 2012 hit out performance goals as a group and only in 2013 were we informed that the company was changing the structure. Is this legal?

  • #2
    MA has no laws specifically addressing bonus pay. This is going to fall more under contract law that wage and hour law. You will need to show all the associated documentation to an attorney in MA
    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.


    • #3
      As cbg said, this is a question of contract law. It may be worth showing the documents to a Massachusetts attorney. Most well drafted bonus plans reserve to the company the right to change the plan at any time, but to change the plan after all the services have been performed and the weighted factors have been "agreed to" (your words) may be too late in the game.
      David K. Staub (
      Forum posts are not legal advice, are for informational and educational purposes only, and are not a substitute for proper consultation with legal counsel.


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