Communication on change of Benefits

[khansen97]

I live in Michigan working for a small (<75 employees) company.

In the last year our CEO has been changing the benefits with hardly any or absolutely no notice. Is he allowed to do this?

Examples: Year end bonuses. The day before everyone in the company was supposed to receive year end bonuses, he notified us of a change in the policy on who was elligible for a bonus and who was not. About 20% of the company was no longer elligible for the bonus even after our quarterly meeting 2 months earlier telling us that we were all elligible.

Second example: He told us that we would all receive a lump sum distributed to our 401k on January 31st. On February 9th (yesterday), 9 days after the money should have been deposited. he informs us that he didn't have the money and that we would not receive it. This is after he spent $20,000 on a superbowl party for "potential" clients.

All I really want to know is if it is legal for him to be changing these benefits without any type of formal timely communication?

Thanks!

 

[cbg]

With regards to the bonuses, it depends on what, if any, written bonus agreement exists and specifically how it addresses the situation.

With regards to the 401k contribution, it depends on whether or not the contribution was voluntary or required by the plan document.

 

[khansen97]

No written bonus agreement, just verbal to the WHOLE company.

Contribution is voluntary as the plan document is not finalized.

So in other words, its just bad business!

Thanks for the Info