Legal Question in Employment Law in California
My husband recently quit his job of 25 years to accept a position with another company. Every March, his previous employer would give a bonus to all employees that would vary in amount, for the previous year's productivity.
My husband's last day with them was December 31, 2013. He was involved with all productivity of that year. He is being told that, because he no longer works there, he is not entitled to this bonus. Does he have a good chance of getting it if he were to take legal action? Thank you.
2 Answers from Attorneys
That depends on the terms of the bonus plan. It is legal to require that an employee continue to be employed until the bonus is actually paid in order to participate in the bonus, but only if that is the rules of the plan when the employee does the work that the bonus is based on.
He has NO chance of getting it unless he can prove the company policies clearly provide that it is 'vested' at some point in time prior to his termination, regardless of whether he is still employed at the time of payout. Highly unlikely. Most employees would wait until bonuses are paid before quitting.
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