Withholding bonus payment due to maternity leave?

[Anonymous]

I just learned that my employer intends to hold my performance bonus payment until I return from maternity leave in a couple months. The performance year for that bonus was 2011, however. In effect, they're holding the payment for work that I have already completed prior to going on maternity leave in the first place.

Is this common? Legal? Mind you, this is the first I've heard of this. In the paperwork that I received outlining their policies, there is no mention of this whatsoever.

[Anonymous]

Their HR Department or whomever manages the bonuses should have some sort of bonus guidelines or policies to refer to. It isn't illegal because bonuses are not mandated by the government - only to pay minimum wage, overtime, etc. In the past the company I work for had the same policy (don't pay bonuses until return from LOA), but we have since changed the policy. So... whatever is written in the policy.

[Anonymous]

Did you ask them why? That would be my first step if it was me.

I would ask in writing and include all relevant details about the bonus payment (2011 compensation, amount, customary payment date). Also, request that the response be written as well for your records. Don't be hostile or accusatory. Just simply ask the question and request the answer. Hopefully that will make them stop and think about what they are doing and give you your money. If not, you have documentation should you need legal help, etc.

[Anonymous]

Anonymous wrote:Their HR Department or whomever manages the bonuses should have some sort of bonus guidelines or policies to refer to. It isn't illegal because bonuses are not mandated by the government - only to pay minimum wage, overtime, etc. In the past the company I work for had the same policy (don't pay bonuses until return from LOA), but we have since changed the policy. So... whatever is written in the policy.

But, if there is a compensation plan that was agreed to that is a different matter. If you are told you'll get x amount of money for doing y on a specific date then they need to honor their agreement.

[Anonymous]

Anonymous wrote:Their HR Department or whomever manages the bonuses should have some sort of bonus guidelines or policies to refer to. It isn't illegal because bonuses are not mandated by the government - only to pay minimum wage, overtime, etc. In the past the company I work for had the same policy (don't pay bonuses until return from LOA), but we have since changed the policy. So... whatever is written in the policy.

Hmm, it's not that simple. They cannot selectively apply a policy or procedure in a way that discriminates against a protected class. So, if they ordinarily pay bonuses to people on leave for reasons other than childbirth, they must also pay OP.

[Anonymous]

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.

[Anonymous]

I am the PP you are quoting. That is why I said get a copy of the bonus guidelines. They should have something there regarding people on LOA. Ours has a paragraph addressing this. In the past the paragraph said that you get paid your bonus when you return from LOA. It was clearly stated and everyone was treated equally. We have since changed our guidelines, but what we did before wasn't illegal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Their HR Department or whomever manages the bonuses should have some sort of bonus guidelines or policies to refer to. It isn't illegal because bonuses are not mandated by the government - only to pay minimum wage, overtime, etc. In the past the company I work for had the same policy (don't pay bonuses until return from LOA), but we have since changed the policy. So... whatever is written in the policy.

Hmm, it's not that simple. They cannot selectively apply a policy or procedure in a way that discriminates against a protected class. So, if they ordinarily pay bonuses to people on leave for reasons other than childbirth, they must also pay OP.

I agree. If your maternity leave is also FMLA leave, this could be considered improper retaliation under FMLA UNLESS they apply this exact same policy to all employees going on leave, regardless of the type of leave. If you are being singled out in any way because of the type of leave you are taking (FMLA/maternity) it's illegal. Also could be considered pregnancy discrimination. Ask to sit down with someone in HR and have someone explain the bonus/leave policy to you. If this is not a policy that is applied across the board to all employees taking any kind of leave and if FMLA applies, there is an issue under FMLA. Even if FMLA does not apply, could be an issue under pregnancy anti-discrimination laws.

[Anonymous]

My DH took leave last year to complete a degree and his bonus for the previous year was withheld until he returned, I don't see why it would be illegal in the case of maternity leave. I think it would depend on what the company's usual policy is on paying bonuses. Also at DH's company, bonuses are paid in March for the previous year. If you leave the company's employment during the first three months of the year, you forego your bonus. It is compensation based on certain criteria that must be fullfilled in order to receive it, even though it is for a retroactive time period.

[Anonymous]

I am the PP everyone is quoting. I admit I am possibly wrong. I am not a lawyer. All I know is our policy used to state you got your bonus upon returning from LOA and a few years ago the policy changed. From what everyone is stating it is because of FMLA. So.... that may be why our policy changed. Take everyone elses advice and get your stuff together and get your bonus paid.

[Anonymous]

This is 10:47- I just called DH and asked him this question (mostly because I was curious about the answer.) He said all bonuses are withheld until return from any kind of leave (this is big law firm). The reasoning is that bonuses are not earned compensation, but rather a reward for current employees based on how profitable the firm was last year. If the firm wasn't profitable, there would be no bonuses. The point of them is to motivate people to work hard going forward and feel good about the place where they work. So, in essence, you have to be working to be in a position to be motivated. I guess the thought is that if you return from leave, the money would still be motivating to you and if you don't, the company doesn't really care about motivating you. However, the flaw in that logic is if they lose employees who feel put out by having to wait and don't return when they might have done so.

Interesting.

[Anonymous]

As a lawyer, my question would be: are employees on maternity leave the only employees on long-term leave to be treated this way? Would a male employee with a broken leg have his bonus withheld if he is home for a month? That's what I would investigate.

[Anonymous]

"My DH took leave last year to complete a degree and his bonus for the previous year was withheld until he returned, I don't see why it would be illegal in the case of maternity leave."

Sigh. Because the Pregnancy Discrimination Act protects women from being treated differently because of their pregnancy. So if this is not their set policy that they apply to other non-pregnant employees, then there is a problem.

[Anonymous]

Anonymous wrote:"My DH took leave last year to complete a degree and his bonus for the previous year was withheld until he returned, I don't see why it would be illegal in the case of maternity leave."

Sigh. Because the Pregnancy Discrimination Act protects women from being treated differently because of their pregnancy. So if this is not their set policy that they apply to other non-pregnant employees, then there is a problem.

But, it would depend on the policies of your specific company, so it is worth asking some questions of the HR. department where you work.

[Anonymous]

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.