I was previously employeed by a very large financial institution. As a employee I was part of a employee incentive program based on production. The last month of employment I accrued a large incentive balance. I notified the employer of my plans to leave the company and submitted my two weeks. On the last day of the month, as I was returning all keys I asked about the incentive I earned during that month. The employer stated that bc I was not going to be a active employee on the day the incentive is paid, they were not going to pay out the balance. The incentive is paid the last day of the month following the month earned. I looked in policies and procedures to check on employer position. It is stated in the incentive plan that they are not obligated to pay out incentive if you are not a employee on date of pay. I have met with other past employees, all of them were paid out their incentives although they were no longer employees. I studied a little law in college and was not sure if this case could be clasiffied as a violation of Business Ethics and if anything could be done about it.
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Denied Earned Incentive
- Thread Starter rkmtz06
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cbg
Super Moderator
Actually, a requirement that you be employed on the day the incentives are released is a very common practice, legal in all 50 states.
Patricia_Young
New Member
cbg
Super Moderator
Seriously? Since when? 
I had employees in CA where we had such a policy, and it passed muster then, but that was ten years ago.
I had employees in CA where we had such a policy, and it passed muster then, but that was ten years ago.
Patricia_Young
New Member
Not carved in stone, but possible.
http://www.dir.ca.gov/dlse/DLSEManual/dlse_enfcmanual.pdf Section 35
In Illinois, I specifically asked this of the DOL when I left my job where it was stated that Illinois law applied, if Illinois law provided a higher benefit than the state in which we (traveling) employees were based. I was told yes, if it was earned according to the agreement, it had to be paid, even if the employee was no longer an employee when disbursed.
I may have oversimplified the California situation. My apologies.
http://www.dir.ca.gov/dlse/DLSEManual/dlse_enfcmanual.pdf Section 35
In Illinois, I specifically asked this of the DOL when I left my job where it was stated that Illinois law applied, if Illinois law provided a higher benefit than the state in which we (traveling) employees were based. I was told yes, if it was earned according to the agreement, it had to be paid, even if the employee was no longer an employee when disbursed.
I may have oversimplified the California situation. My apologies.
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