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Hello, I recently left my Pharma sales job after working through the last day of the 3rd Qtr (Sept 30th). This period marked not only Quarter's end but also the incentive "bonus" payout that I earned for that 3 month period. Unfortunately, my former company's policy states you must be an active employee to receive payout (in late Nov). Is that true? I had heard somewhere withholding earned bonus pay is illegal and in violation of California's labor laws. Is this true? If so, what steps should I take next? Thanks, Clint

Submitted: 392 days and 19 hours ago.
Category: Employment Law
Value: $15
Status: AWAITING CUSTOMER ACTION
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Posted by PaulMJD 392 days and 18 hours ago.

Answer

Bonus pay is at the discretion of the employer, unlike commissions which are earned. If the employer has a policy that the employee must be employed at the time to collect bonus pay, then this is the law that binds you and the employer. Under CA law, Truly discretionary bonuses are legal, but a bonus is discretionary only if: (1) the fact and the amount of the payment are determined in the sole discretion of management; and (2) the payments are not pursuant to any contract, agreement, or promise causing the employee to expect such payments regularly. If the employer has a written policy that you must be currently employed to receive the bonus, then this is allowed under CA law.

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392 days and 11 hours ago.

Reply

Ok. I guess the challenge is that is this pay truly "bonus" and not commissionary since its based on obtaining certain level of sales. Recently, many companies in my industry have recently changed that policy and calling earnings "bonuses" and thereby not having to pay.

 

Given the figure is close to $5000.00, do I have any recourse? I had heard from industry colleagues that many companies cave-in if they receive a letter from an attorney.

 

Your thoughts are appreciated...

Accepted Answer

You can try getting an attorney to send a letter and tell them that since this is a regularly expected check, it is not a true bonus and see if they will cave. Unfortunately, that is beyond the scope of this service, but for that money, it may be worth the $100-$200 a lawyer will charge ot help you with it.

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Expert: PaulMJD
Pos. Feedback: 99.5 %
Accepts: 
Answered: 10/28/2008

Attorney

20+ Years of Employment Law Experience

392 days and 5 hours ago.

Reply

Thanks. I really appreciate it!

Posted by PaulMJD 391 days and 21 hours ago.

Answer

Good luck to you and thank you.

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