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Marsha411JD, Lawyer
Category: Employment Law
Satisfied Customers: 20239
Experience:  Licensed Attorney with 29 yrs. exp in Employment Law
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My firm has decided to institute a deferred compensation

Customer Question

My firm has decided to institute a deferred compensation policy for our discretionary bonuses. My options are either to sign it or to not sign it - the firm will not negotiate the policy. Am I forgoing any federal or state legal protection that I should be aware of by signing the document or if it's a discretionary bonus - there is no federal / state legal protection?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Marsha411JD replied 1 year ago.


Thank you for the information and your question. If this is a discretionary bonus, then your employer is not required by law to pay it. That, in turn, means that they can set any condition on earning and collecting this bonus that they deem appropriate. So, other than just making sure you understand the terms in the agreement, there is nothing else that you have a right to know or do. In other words, not agreeing is your option, but then the employer can take whatever action they want in terms of that bonus for you as a result of your refusal.

This assumes that you are not agreeing to waive your rights to minimum wage as a part of this agreement. Please let me know if you need any clarification. If none is needed, then if you could take a moment to leave a positive rating in the box above, I will receive credit for assisting you today. Thank you

Expert:  Marsha411JD replied 1 year ago.

Hello again,

I wanted to touch base with you and make sure that you did not have any follow up questions for me from the answer I provided to you on the 16th. For some reason, the Experts are not always getting replies or ratings (at the top of the question/answer page you are viewing or in the pop up box for this question), which is how we get credit (paid by the Site) for our work, that the customer thinks have gone through. In your case I received neither. If you are having technical difficulties with reading, replying or rating, please let me know so that I can inform the Site administrator. Please note that Site use works best while using a computer and using either Google Chrome or Firefox.

In any event, it was a pleasure assisting you and I would be glad to attempt to assist you further on this issue, or a new legal issue,if needed. You can bookmark my page at:

Thank you.