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Previous Year's Incentive Compensation

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C

Cb0202

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This company operates in Ohio. Employment offer letter read as follows: "Effective with your start date of January 17, 2000, your compensation shall include a base salary of $xxx per year. In addition, you will receive a one-time sign on bonus of $xxx grossed up for tax purposes. As part of the compensation package, you will be eligible to participate in the XYZ Incentive Compensation plan. Your targeted participation in this plan is 15% of your base salary. The actual amount will vary depending on the meeting of the divisional financial goals as well as your completion of agreed upon non-financial goals. The first year of participation for you will be pro-rated based on the actual number of months worked during the 2000 XYZ fiscal year, which ends 12/31/2000."

In late Fall, it became clear that the company (owned by a large conglomerate) was being 'skinnied down', possibly for an upcoming sale. Vice Presidents, Managers, etc. were being eliminated to cut cost. Seeing the handwriting on the wall, I began to search for a new position. I secured one in February, 2001 and began work in late February.

I worked all through the 2000 fiscal year for the former employer. My performance would guarantee me a bonus. The firm handed out the checks the week after I left and I was told that I wasn't getting one since I wasn't there at the time of distribution.

My question is: isn't this bonus part of my 'earnings' versus a gift, etc. and due me?
 



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