Question regarding application of a performance based bonus plan

[ocweb]

What is the name of your state (only U.S. law)? California

Hello all,

Seeking information and what options to pursue regarding application of a performance based bonus plan.

State of employment: California

Currently employed in a financial services company as director of internet marketing, my responsibilities are lead generation using online marketing, where leads are sent to the company’s sales department. My compensation plan involves a salary and performance based bonus plan. The bonus plan is triggered for new direct policy in excess of the monthly average over the last three years. All lead sources including, direct mail, existing policy holders, and referrals are included in the calculation for the bonus plan.

What is prompting this post is the company started a program, where leads are generated from a referral channel. This source is not included in my bonus calculation even though I was involved with the web site where leads are generated.

In addition to the above, the company had acquired an additional brokerage to handle those leads, generated from my online efforts, the parent company was not able to close (due to its underwriting standards) and sends those leads to its sister company.

My question is, am I eligible to receive bonuses for the sales in either the new program or sister company?

 

[TheGeekess]

What is the name of your state (only U.S. law)? California

Hello all,

Seeking information and what options to pursue regarding application of a performance based bonus plan.

State of employment: California

Currently employed in a financial services company as director of internet marketing, my responsibilities are lead generation using online marketing, where leads are sent to the company’s sales department. My compensation plan involves a salary and performance based bonus plan. The bonus plan is triggered for new direct policy in excess of the monthly average over the last three years. All lead sources including, direct mail, existing policy holders, and referrals are included in the calculation for the bonus plan.

What is prompting this post is the company started a program, where leads are generated from a referral channel. This source is not included in my bonus calculation even though I was involved with the web site where leads are generated.

In addition to the above, the company had acquired an additional brokerage to handle those leads, generated from my online efforts, the parent company was not able to close (due to its underwriting standards) and sends those leads to its sister company.

My question is, am I eligible to receive bonuses for the sales in either the new program or sister company?

What does your contract say about that?

 

[ocweb]

What does your contract say about that?

Hi TheGeekess,

In my interpretation, I'm eligible to receive bonus for all sales using my generated lead sources. The company might have a different viewpoint.

Just wondering best course of action to take before I broach the subject with them.

What's your input?

 

[Dave1952]

If I follow you, you are supposed to get a bonus for business generated by referrals but now there is a "referral channel" that is not included in your bonus. Would you expand on what this referral channel is. Have you discussed your concerns about the bonus program with your employer? Has your actual bonus been diminished by the referral channel?

 

[cbg]

I continue to maintain that this is not a matter of wage and hour law, but a matter of contract law, and that since we have not read your contract OR the documentation relating to this new referral program, NO ONE can give you a definitive answer. We couldn't give it to you down the street, and we can't give it to you here.

 

[ocweb]

If I follow you, you are supposed to get a bonus for business generated by referrals but now there is a "referral channel" that is not included in your bonus. Would you expand on what this referral channel is. Have you discussed your concerns about the bonus program with your employer? Has your actual bonus been diminished by the referral channel?

Somewhat correct, the company started a new channel, which is “referral” in nature (the new channel’s users actually perform the data entry on behalf of their respective client. This is a gray-area, due to the state requirement that a licensed agent must confirm coverage amounts prior to policy issuance.)

In addition to the above, the company also purchased a sister company to handle those leads, that I have generated, where they are unable to service. Those sales from sister company are not included in my bonus calculation yet I originated said leads.

Currently, “referrals” are included in my bonus calculation yet for this new channel they are not nor are they included for the sister company. I am kept in the dark regarding any details. My only knowledge is from building the site to facilitate the data entry.

No discussion with employer as of yet, just gathering information.

Yes, bonus has been reduced due to the new channel and sister company.

 

[ocweb]

I continue to maintain that this is not a matter of wage and hour law, but a matter of contract law, and that since we have not read your contract OR the documentation relating to this new referral program, NO ONE can give you a definitive answer. We couldn't give it to you down the street, and we can't give it to you here.

Hello cbg,

Understood, I’m somewhat out of my element regarding this; hence my forum posting to solicit feedback.

I understand the need review documentation prior but very little is available; the only documentation is my offer letter where the bonus calculation terms were spelled out.

Here is the exact wording:

“You will be a full time employee and will receive a base salary of $XXXX.XX per month plus a performance based bonus equal to $X.XX per new direct policy in excess of the monthly average over the last three years.”

I’m assuming the lack of specifics on the company’s part might be to my advantage.

 

[Dave1952]

It sounds as if they are automating your job. A lawyer can tell you whether you can recover the "missing" bonus money if the amount of money justifies hiring a lawyer. Start interviewing and plan your future before this business plans it for you. Sorry, wish I could offer you more.