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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 19169
Experience:  Employment/Labor Law Litigation
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Employee terminated: s agreement stated: "You will receive

Customer Question

Employee terminated: His agreement stated: "You will receive an annual performance bonus with a target amount of fifty percent (50%) of your annual base salary, based on the achievement of performance goals determined by the EVP of XXXXXXXXX in conjunction with the Board of Directors. You will be paid a quarterly draw against your annual bonus in the amount of $20,000 commencing with the 3rd quarter of 20XX
payable on the last day of the quarter (first draw payment due September 30, 20XX). “
Employee was terminated with two quarters of the bonus payment not paid yet. Employee expects the bonus advances to be caught up on. Note: No way does the agreement require bonus advances to be paid back. Termination was NOT for cause. Is the two quarters of bonus payment owed?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Allen M., Esq. replied 1 year ago.

Thank you for trusting your question to JA today. I am a licensed attorney with over a decade of law practice and over 20 years of experience in the legal field. I’m happy to be of assistance.

He certainly has a legal argument based on the bonus pay being a form of his compensation package, rather than merely a gift (like a Christmas bonus). It has performance factors and even a general figure that it is supposed to be connected to, allowing a court to loosely determine an amount. He wasn't terminated for cause and didn't resign, so the court can hold that the employer is not allowed to terminate their way out of having to pay bonus draws, as they should have been paid quarterly.

So, he has an argument but it is entirely a quasi contractual argument. He can't file a sort of wage claim with the Texas Workforce Commission and would have to sue in state court with his own counsel.

If you have any further questions, please let me know. I invite follow up questions, so use REPLY for those. If you have no further questions then good luck going forward and please do not forget to rate my service with a top-three rating so that I receive credit for working with you today. Also, feel free to request me in the future, if you have questions concerning a different matter.

Expert:  Allen M., Esq. replied 1 year ago.

Hello, I wanted to check in and make sure that there was not any additional information that you required. If you need further assistance, please use REPLY and ask me for any additional information you may need. If not, take care and have a great day.

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