What Happens When You Don’t Get Your Employment Bonus?
The end of the year can be one of the more exciting times for a New York employee. In addition to paid holidays, a lighter work load and a slightly awkward but always entertaining holiday party, the end of the year is also when a lot of employees receive (or are at least informed of) their bonus. For certain New York employees and executives, a yearly or quarterly bonus represents a substantial portion of their paycheck.
With so much weighing on a bonus that is often categorized as discretionary, what happens when an employee quits or is fired before the much relied on bonus is paid? As you can guess, this is a contentious issue that is not always black and white.
The analysis in any employment bonus dispute case boils down to a simple question: was the bonus purely discretionary or an integral part of an employee’s compensation? If a bonus falls in the first category, the employer has the choice to pay or not pay a bonus. If the bonus falls in the second category, then failure to pay can be characterized as a breach of the employment contract.
With all the complications in classifications, it is easy to see how lawyers are often called in early to determine the nature of the bonus. Generally speaking, if an employee is paid a small base salary and a large bonus, then it is likely that the bonus is not discretionary.
If you were denied a bonus and are wondering if you have the right to recover that bonus, give us a call for a free case review.
