unbeknownst
Junior Member
What is the name of your state? IL
Hello,
Here are the facts of my situation:
1. Last year, my former employer last year received some business that required a tremendous amount of work be completed by a specific time. To motivate the staff, it provided a special bonus plan that compensated employees for specific tasks to be completed to meet the specifications of the contracted business. (i.e. the bonus specified we receive $X dollars for each unit of work completed).
2. The work was completed by employees and the company paid half of the bonus at that time and retained the remainder to be paid in early 2005. The bonus plan document specified nothing about needing to be employed by the firm to receive the 2nd half. The document does specify that the purpose of the bonus is to compensate us for specific tasks completed.
3. I understand that most bonus plans are considered discretionary and are therefore a matter of company policy. Most company policies specify workers must be employed by the firm at the time of payment to get a bonus. I also understand that some forms of bonuses are considered nondiscretionary when there is agreement between the employee/employer to complete specific tasks for specific sums of money. I am uncertain whether the legal treatment of these plans require payment by the employer even if the worker quits before the bonus is paid.
4. I did some research on the IL dept of labor site. There is a law called the IL Wage Payment and Collection Act. Title 56 Ch1b Part 300.500 states "A claim for an earned bonus arises when an employee performs the requirements for a bonus set forth in a contract or an agreement between the party". The nature of our work is professional level; normal pay is based on salary (not hourly). I am not sure whether the fact that the nature of the former job is not compensated based on an hourly rate excludes it from jurisdiction under the IL WP&CA.
I guess you can figure where this is going. I left the firm for another job. I think I am entitled to receive the 2nd half of the bonus because it is by definition a nondiscretionary bonus (and I completed the tasks specified under the agreement). I understand there is prior legal precedent supporting this position. Any thoughts on whether I am standing on any legal ground? Thanks for your help.
Hello,
Here are the facts of my situation:
1. Last year, my former employer last year received some business that required a tremendous amount of work be completed by a specific time. To motivate the staff, it provided a special bonus plan that compensated employees for specific tasks to be completed to meet the specifications of the contracted business. (i.e. the bonus specified we receive $X dollars for each unit of work completed).
2. The work was completed by employees and the company paid half of the bonus at that time and retained the remainder to be paid in early 2005. The bonus plan document specified nothing about needing to be employed by the firm to receive the 2nd half. The document does specify that the purpose of the bonus is to compensate us for specific tasks completed.
3. I understand that most bonus plans are considered discretionary and are therefore a matter of company policy. Most company policies specify workers must be employed by the firm at the time of payment to get a bonus. I also understand that some forms of bonuses are considered nondiscretionary when there is agreement between the employee/employer to complete specific tasks for specific sums of money. I am uncertain whether the legal treatment of these plans require payment by the employer even if the worker quits before the bonus is paid.
4. I did some research on the IL dept of labor site. There is a law called the IL Wage Payment and Collection Act. Title 56 Ch1b Part 300.500 states "A claim for an earned bonus arises when an employee performs the requirements for a bonus set forth in a contract or an agreement between the party". The nature of our work is professional level; normal pay is based on salary (not hourly). I am not sure whether the fact that the nature of the former job is not compensated based on an hourly rate excludes it from jurisdiction under the IL WP&CA.
I guess you can figure where this is going. I left the firm for another job. I think I am entitled to receive the 2nd half of the bonus because it is by definition a nondiscretionary bonus (and I completed the tasks specified under the agreement). I understand there is prior legal precedent supporting this position. Any thoughts on whether I am standing on any legal ground? Thanks for your help.