Withholding bonus payment due to maternity leave?

[Anonymous]

Anonymous wrote: the sad fact is that they likely put a policy like that in place because of people who go on leaves of absence and don't return.

While I think you are right in your assumption, it doesn't seem right they can hold the money when the work has already be completed, you've been evaluated for said time period and the bonus and raise have been agreed upon by the organization.

[Anonymous]

Anonymous wrote:are they postponing the payment because you are on leave, or because you are on maternity leave? it matters. if there is a nuetral policy that says you must be an active employee on the date of distribution, and they apply it universally, that's fair. the sad fact is that they likely put a policy like that in place because of people who go on leaves of absence and don't return.

Exactly.

[Anonymous]

Anonymous wrote:

Anonymous wrote: the sad fact is that they likely put a policy like that in place because of people who go on leaves of absence and don't return.

While I think you are right in your assumption, it doesn't seem right they can hold the money when the work has already be completed, you've been evaluated for said time period and the bonus and raise have been agreed upon by the organization.

That is exactly why they don't pay bonuses until people return from leave. Of the seven women at my firm who went on maternity leave in the last two years, only one returned. Several chose to SAH, but several also left and went to other firms. Those other firms paid the bonuses to these women as an enticement for them to come over, so the women were not out the money and the firm that paid is the one that they will now feel a loyalty to. Bonuses are not deferred compensation, they are a carrot.

[Anonymous]

Anonymous wrote:

Anonymous wrote: the sad fact is that they likely put a policy like that in place because of people who go on leaves of absence and don't return.

While I think you are right in your assumption, it doesn't seem right they can hold the money when the work has already be completed, you've been evaluated for said time period and the bonus and raise have been agreed upon by the organization.

You're confusing discretionary bonuses with wages. Wages are earned as soon as the work is done and must be paid regardless of whether you leave after doing the work. Bonuses can be withheld as long as they are discretionary (not promised to an employee pursuant to some sort of contract).

OP, I posted earlier and said they can do this as long as this policy is applied equally. Otherwise, it's a possible FMLA violation and possibly pregnancy discrimination. You may want to consult a plaintiff's employment lawyer. GL.

[Anonymous]

Definitely see a lawyer. Sometimes bonuses are deferred comp, in which case you already may have earned it. Sometimes bonuses are incentives, which can be different. The facts matter a lot here.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: the sad fact is that they likely put a policy like that in place because of people who go on leaves of absence and don't return.

While I think you are right in your assumption, it doesn't seem right they can hold the money when the work has already be completed, you've been evaluated for said time period and the bonus and raise have been agreed upon by the organization.

You're confusing discretionary bonuses with wages. Wages are earned as soon as the work is done and must be paid regardless of whether you leave after doing the work. Bonuses can be withheld as long as they are discretionary (not promised to an employee pursuant to some sort of contract).

OP, I posted earlier and said they can do this as long as this policy is applied equally. Otherwise, it's a possible FMLA violation and possibly pregnancy discrimination. You may want to consult a plaintiff's employment lawyer. GL.

But if a bonus is part of your compensation plan and it is for a calendar year (we will go with 2011 for the sake of this discussion) and the year has been completed, you've attained the goals you were given as conditions of earning the bonus, your review has been completed, you've been told you will receive x% for raise and $xxx for bonus. How can they hold this bonus hostage until you return from maternity? I'm not a lawyer, but I fail to understand how you wouldn't be entitled to that money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: the sad fact is that they likely put a policy like that in place because of people who go on leaves of absence and don't return.

While I think you are right in your assumption, it doesn't seem right they can hold the money when the work has already be completed, you've been evaluated for said time period and the bonus and raise have been agreed upon by the organization.

You're confusing discretionary bonuses with wages. Wages are earned as soon as the work is done and must be paid regardless of whether you leave after doing the work. Bonuses can be withheld as long as they are discretionary (not promised to an employee pursuant to some sort of contract).

OP, I posted earlier and said they can do this as long as this policy is applied equally. Otherwise, it's a possible FMLA violation and possibly pregnancy discrimination. You may want to consult a plaintiff's employment lawyer. GL.

Yes, but sometimes what they call "bonuses" are actually more like wages. Very fact dependent. Also, I would argue that if she is working on the date bonuses are handed out to other employees, there is a pretty strong implication of.pregnancy discrimination if she doesn't get hers - even if the bonus is truly discretionary. The company would have a big burden to show that they treat nonpregnant people the same way.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: the sad fact is that they likely put a policy like that in place because of people who go on leaves of absence and don't return.

While I think you are right in your assumption, it doesn't seem right they can hold the money when the work has already be completed, you've been evaluated for said time period and the bonus and raise have been agreed upon by the organization.

You're confusing discretionary bonuses with wages. Wages are earned as soon as the work is done and must be paid regardless of whether you leave after doing the work. Bonuses can be withheld as long as they are discretionary (not promised to an employee pursuant to some sort of contract).

OP, I posted earlier and said they can do this as long as this policy is applied equally. Otherwise, it's a possible FMLA violation and possibly pregnancy discrimination. You may want to consult a plaintiff's employment lawyer. GL.

But if a bonus is part of your compensation plan and it is for a calendar year (we will go with 2011 for the sake of this discussion) and the year has been completed, you've attained the goals you were given as conditions of earning the bonus, your review has been completed, you've been told you will receive x% for raise and $xxx for bonus. How can they hold this bonus hostage until you return from maternity? I'm not a lawyer, but I fail to understand how you wouldn't be entitled to that money.

It depends on the terms of the plan. If it's discretionary, which is a term of art when it comes to bonuses, then it can be withheld if you aren't there. If it's basically been promised to you pursuant to a contract, then it must be paid even if you left. Policies and state laws differ on this.

[Anonymous]

Anonymous wrote:OP here -- I just checked the FMLA policy guidelines that they sent when I went on leave and there is no reference to this at all (it does address health insurance). Mind you, our COLA or other salary increases due for the current year are payable during this time. It just seems logically inconsistent to me.

They may have a policy that does not pay out bonuses for anyone not actively employed as of the date of the bonus distribution.

[Anonymous]

I haven't read the entire thread, but I had the same thing happen to me. Our bonuses for 2011 were paid out in 2012 while I was out on maternity leave. I didn't get my payment until I came back. I checked with HR and our policies clearly state that you have to be employed and not on leave in order to receive a bonus. Checked with a family friend who is an employment lawyer and he said there is nothing illegal about it as long as the policy is applied uniformly. I was planning to come back anyway so it didn't really affect me in any way.