Legal Question in Employment Law in California
I was given an offer letter when I was offered a job in CA that stated "The annual salary for this exempt position is $_______. This is a full-time position. The expectation for hours worked per pay period is a minimum of eighty. This position qualifies for a performance bonus up to 10% of your base wages."
I am now being told that no directors will be given a bonus this year. Do I have an recourse? This is my first year of employment with this company.
2 Answers from Attorneys
Bonuses are usually discretionary. Since the letter states that the job qualifies for a bonus of "up to" 10% - it appears to be at the discretion of the company and not mandatory. The letter provides a maximum amount, but not a minimum amount.
" position qualifies for a performance bonus up to 10% " means IF bonuses are paid, and IF they decide to pay YOU a bonus. That language is not a guarantee of bonus, it never is unless it specifies how much, when, and that it is "guaranteed".
You need to do a little research and learn the normal rules and practices in employment.
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