Big company renegs on contest award

[awardblvr]

California

My former employer, Cisco, awarded the top prize of a contest open to all employees then took the prize away because I was leaving. Should I seek legal remedy on this?

Here's the situation. Cisco ran a "Best Home Network" contest to try to identify the best home network as way to then show customers how its own employees did home networking. As a byproduct the winner gets the honorable position of having the best home network and winning the $1000 prize.

So while employed there (11 years), I entered the contest and the final winners were to be announced before I voluntarily left for another job. The contest closed and the winners were scheduled to be announced before I left. The winner was selected the day I left. The awarded me the top prize and then found I had left the company. So they contacted my former mgr, who said I should still be awarded the prize and that I left on good terms. So they decided to go ahead with it all and had scheduled interviews and the award ceremony.

But just last night I got an e-mail saying they had changed the overall winner to another person because I had left the company. But the facts are that the the contest was OVER before I left.

The contest rules NEVER stated I had to remain with Cisco. This seems highly unethical and unfair.

Should I seek some kind of legal redress? It has been quite embarrassing to tell people I had won and then to have it taken away.What is the name of your state?

What is the name of your state? California

 

[racer72]

What exactly are your losses that you could claim in a lawsuit? And don't say the $1000, you can't lose something you never had.

 

[awardblvr]

My losses are the reputation loss of integrity by professional colleagues and friends whom I notified that I had won the contest. I had been notified, I have all the documentation (Web page printouts, e-mails, etc.).

I'm not yet directly affected financially.

Thanks

-Andrew

 

[moburkes]

Unless it was a specific CONTRACT that they violated there is no legal redress.

 

[JustAPal00]

I disagree! All sorts of companies use contests and spiffs to entice employees. The top performers learn to count on it as income. You won the contest, you followed all the rules, and you were still employed when the contest ended.

 

[moburkes]

I disagree! All sorts of companies use contests and spiffs to entice employees. The top performers learn to count on it as income. You won the contest, you followed all the rules, and you were still employed when the contest ended.

Then the top-performers made a mistake. Hell, the law even says that your INCOME can be lowered, as long as you are given proper notice. How can a contest, unless the prize is CASH, be counted on as income? If I win a duffle bag, how is that income?

 

[racer72]

Then the top-performers made a mistake. Hell, the law even says that your INCOME can be lowered, as long as you are given proper notice. How can a contest, unless the prize is CASH, be counted on as income? If I win a duffle bag, how is that income?

The company policy changed a few years ago with my employer, any kind of gift, reward or prize valued at $25 or more will be counted as income. My crew was recently given jackets valued at $50 as gifts, my next paycheck showed a $58 additon to the income part because of the jacket, the value of the item plus my employer is generous enough to pay the taxes too. This is the standard procedure for many companies today.

 

[moburkes]

The company policy changed a few years ago with my employer, any kind of gift, reward or prize valued at $25 or more will be counted as income. My crew was recently given jackets valued at $50 as gifts, my next paycheck showed a $58 additon to the income part because of the jacket, the value of the item plus my employer is generous enough to pay the taxes too. This is the standard procedure for many companies today.

Oh, I agree with and understand that. However it is not money in your pocket, is my point. If you receive a leather jacket, unless you sell it for the same amount that it added to your income, how can you make a leather jacket equal cash?

 

[turbowray]

I also dissagree, it was won, then they took it back, I would fight it, and let small claims court determine whether it should be paid or not. I would wonder though if there was a clause in the contest information papers, that stated a winner would not be given their prize if they left the company at any time (a list of rules if you will for the participants of the contest)? If not, I feel they would be obligated to fullfill their part of the agreement, by paying the prize money. I would imagine that the employee had to do work to present her ideas that won. I could be wrong, but I would fight it until a court told me otherwise.

 

[turbowray]

The company policy changed a few years ago with my employer, any kind of gift, reward or prize valued at $25 or more will be counted as income. My crew was recently given jackets valued at $50 as gifts, my next paycheck showed a $58 additon to the income part because of the jacket, the value of the item plus my employer is generous enough to pay the taxes too. This is the standard procedure for many companies today.

Wow, does this mean you were taxed on a gift item, and not even money?

 

[turbowray]

Employee awards or bonuses. Cash awards or bonuses given to you by your employer for good work or suggestions generally must be included in your income as wages. However, certain noncash employee achievement awards can be excluded from income. See Bonuses and awards in chapter 5.

From the Internal Revenue Servise site. I would consider this a cash award for suggestions. I promise I am not trying to be argumenative, I would just love to see this employee get what he/she deserves for winning this contest.

 

[moburkes]

But, if its not given, its not taxed.

From personal experience, I did not receive all of my award after I quit. No biggie. I also didn't get taxed on it. Makes sense? Perfectly, to me.

 

[turbowray]

Then the top-performers made a mistake. Hell, the law even says that your INCOME can be lowered, as long as you are given proper notice. How can a contest, unless the prize is CASH, be counted on as income? If I win a duffle bag, how is that income?

Your right, it should not be counted as income until it is in the check, but is it legal to hold a contest, and then not pay the winning contestant? This is an odd situation that one does not hear about often, or at all until now, so I can say I really do not know what the laws are pertaining to this, such as false advertisement. I really do not know, but, as a winner I would at least consult with an attorney to see if they can do this. That is just me though.

 

[Zigner]

Seems perfectly fair for the company to require that the winner be employed AT THE TIME OF THE DISTRIBUTION, not just at the end of the contest.

 

[LeeHarveyBlotto]

Seems perfectly fair for the company to require that the winner be employed AT THE TIME OF THE DISTRIBUTION, not just at the end of the contest.

One could disagree about it being fair (although I don't disagree). It is, however, 100% legal to have such a requirement.