| My husband is resigning from his current firm and moving to a new job which he is very excited about. Here is my question: He is resigning this January. However, his current employer still owes him his bonus from 2014. DH has a specific amount that was put in a letter during 2014 indicating what is bonus would be last year. His employer is now saying we will pay only 10% of the 2014 bonus, and asking him to sign a form saying he will not ever sue his current employer. What do we do?! |
| He should've resigned after the bonus. Most employers won't pay bonuses that are set to be dispersed after after resignation dates. Live and learn and don't burn the bridge. |
| Say if you give me my entire bonus, I will sign the letter saying I won't sue. |
Agreed. |
This, next time get bonus and quit or see if new company will pay it. |
| Yep, my employer mandates that you be actively employed on the day bonuses are paid, otherwise you are SOL. One year I was on maternity leave when it was paid out, so I had to wait until the first paycheck after coming back to get it. If you are talking about a significant amount, it might be worth it to check with a lawyer, but in general I agree this might be a live and learn situation. |
| Get an employment attorney. Depending on the state where your husband is employed, he may yet be entitled to that bonus. I was recently told that in VA, which is very employer friendly in general, courts still frown on employers relying on their own "policies" so as to deny bonuses fully earned in situations just like this. |
| OP here: bonuses were supposed to be paid out 1/2 in June 2014 and the other 1/2 December. Firm was having cash flow problems and could not pay it then. |
Sounds like they're still having cash flow problems. |
I would talk to a lawyer. They are asking you to sign away the rest of your bonus. It sound like the first offer in a negotiation. Did you get everything in June? I would make waves...who wants to work for some place that fucks with your money. |
| He very well may be eligible if the bonus was earned -- especially if a portion was to be paid out in June. Depending on the bonus amount, it is likely worth hiring an attorney. |
| I don't get what is in it for your husband for signing? They'll give him 10% if he signs and nothing if he doesn't? hah. |
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The law in Virginia is that discretionary bonuses are money that an employer give to an employee on top of money earned by the employee.
If it is truly a bonus and not deferred compensation, he has no case. You only are entitle to money earned. He has a better argument if there is a structure in place that removes the discretion, ie, bill x dollars and earn y bonus. I have won a number of cases like this for employers. |
I forgot to add, the two most important issues for you to ask are 1) has his entitlement to the bonus vested (this goes to the earned bs discretionary point) and 2) does the company have a policy that states you have to be employed at the time the bonus is paid for you to have a vested right to the bonus. Virgina courts have repeatedly upheld clearly written policies that make current employment with the employer a prerequisite to vesting. |
OP here: to my knowledge the company has no policy in place stating you have to be employed at the time bonus is paid. in his original offer letter years ago it stated that his compensation would be monthly as well as two distributions/bonuses to be paid out twice annually. It was not a situation of, if the firm is doing well you will get a bonus, and if not too bad. DH has something in writing saying his 2014 would be X amount. Part of the reason he is leaving the firm is bc they are constantly having cash flow problems. It was never as simple as waiting until February (for example) to get the bonus before quitting, bc it could be February a year from now. |