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Employer bought raffle ticket

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fishifanb

Junior Member
What is the name of your state (only U.S. law)? CA

My employer bought a table at a charity dinner and gave a ticket to attend to my wife and I. The event included a raffle with a cash grand prize of $10,000. Amazingly, our ticket number was drawn.

It was my understanding before-hand that any prizes we won were ours to keep.

Now that there is so much cash on the line, though, some of the partners in the firm are insisting that, since the firm bought the ticket, that the winnings belong to the partners and not to us.

This doesn't seem right. Wasn't the ticket to the event a gift to me? Shouldn't any winnings also be mine?

I really don't mind spreading it around a little bit but now find that I may be expected to settle for as little as $500.

Is anyone aware of a precedent for this?
 


FlyingRon

Senior Member
Most likely it is your employer's money.
Did you pay to enter the raffle or was it part of the admission ticket?
What do you base your understanding upon?
 

Antigone*

Senior Member
What is the name of your state (only U.S. law)? CA

My employer bought a table at a charity dinner and gave a ticket to attend to my wife and I. The event included a raffle with a cash grand prize of $10,000. Amazingly, our ticket number was drawn.

It was my understanding before-hand that any prizes we won were ours to keep.

Now that there is so much cash on the line, though, some of the partners in the firm are insisting that, since the firm bought the ticket, that the winnings belong to the partners and not to us.

This doesn't seem right. Wasn't the ticket to the event a gift to me? Shouldn't any winnings also be mine?

I really don't mind spreading it around a little bit but now find that I may be expected to settle for as little as $500.

Is anyone aware of a precedent for this?
This can cause a huge tax problem for you, if you allow this money to be given to you. Make sure that before you accept the money that you have a clear understanding of how it may be reported.

My two cents, is this: It's your money if you get the 1099 ~ no legal advice here, just opinion.;)
 

fishifanb

Junior Member
My employer did pay the $100/couple cost of attending the event. Entry into the raffle was included in that cost.

We did purchase a sheet of tickets for the dutch auction and bid on some silent auction items though we made no contribution toward attending the event itself.

My understanding was based on the fact that, prior to the event, one of the partners actually told several of us that we would not be expected to share any winnings. That would have remained the case, I'm sure, if the size of the prize were not so large.
 

Mass_Shyster

Senior Member
It seems that the employer gave the ticket as a gift. Without specifically reserving the rights to any winnings, the $10K should belong to the employee.

but.....

If the payment is made to the purchaser of the ticket, employee would probably have to sue to get the money, in which case a court would decide.

Also note that there would be nothing illegal about the employer firing the employee for not handing over the winnings.
 

Country Living

Senior Member
And how long that 10K would last you, and how much you'd have to spend for the attorney. :p
That's what I was thinking (aside from what I could do with $10k).

You've got state and federal taxes coming off it - say 50% just for conversation purposes (California is pretty proud of their income tax rates). Then attorney fees of at least $5,000 plus the costs and aggrevation to find a new job.

Does your boss represent the entire partnership in this matter?
 

Beth3

Senior Member
This was a business event (your employer undoubtedly had a reason to purchase a table at this event, if only for community PR) and your employer purchased the tickets. I can't think of any reason why your employer can't insist that the prize money belongs to them.

It would be awfully nice if they congratulated you on your good luck and let you keep the money but they don't have to do that.
 

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