Excluded From Bonus Program

[RMNJ]

What is the name of your state (only U.S. law)? New Jersey

I'll try to make this short. I recently left a job after 6 plus years of employment. Prior to leaving, I discovered I had been eligible to receive a bonus payout each year which I have never received. The program is not listed in any company literature that I was made aware of hence my lack of knowledge of its existence. Participation required only that I meet certain eligibility requirements which I had satisfied within the first few months of emploment. Once those were met participation was automatic. I brought this oversight to the attention of management who admitted that there had been some mistake, I had been indeed elilgible for the program all along. I was told I would be enrolled for the current year (2009) and receive my payout for 09 in early 2010. As for previous years I was told the company would do nothing for me retroactive. The reason given was that the company had never done anything retroactive. To date I have not received any moneys, not even for 2009. Is this something I can and should persue further? Thank you for your time. What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

 

[swalsh411]

Most bonus payments are discretionary and most companies if they are smart have a blurb somewhere in their policies or handbook to this effect to prevent exactly what you are trying to accomplish. Sometimes a bonus can be construed as non-discretionary (i.e. binding on the employer) if the employee is told in advance that they will receive it if they meet certain goals and then the employee works to meet those goals expecting the additional pay. This is more properly classified as incentive pay however rather than a bonus.

In your case, since you were not even aware of the "bonus" program until after you terminated you cannot claim that you were promised something and then made extra effect to obtain it. Furthermore, since apparently the company went to some effort to hide the existence of this program that could reasonably make the claim that is was entirely discretionary and only made available to certain employees. (which is completely legal).

I think your chances of winning in court are slim to none. Your only hope is that the company will offer you some type of settlement to bring the matter to a close.

 

[RMNJ]

Actually I learned of this program prior to leaving this company's employ and discussed this with management well before giving notice. According to management myself and one other individual were accidently excluded. I don't know if that changes anything or not.

 

[swalsh411]

Who in "management" told you that you accidentally excluded? Was it somebody with the authority to actually make that determination?

My point is that you bear the burden of proof to show that the company is obligated to pay this bonus. The company line can simply be that "the program was discretionary and we did not elect to include RMNJ."

 

[RMNJ]

I want to thank you for taking the time to answer my questions. I expected there was little hope of any recovery but I thought I would at least ask. Thank you again.