Consumer Law, Warranties Not Paid Bonus Guaranteed in Employment Offer Letter

[RJRalston]

When hired by a California company my Employment offer letter had "guaranteed annual bonus" of $20,000 which I accepted and signed.

After the first year I had to fight and argue to get paid that bonus 4 months late. I have been with this firm now for 4 years and since the first bonus I have only been paid $5K. To date this company owes me $55K in guaranteed bonus compensation. I keep being told that they don't have the money. However during this period this company has hired new people with similar offers and now refuses to pay them as well. These new offers were being made while the company still owed me my bonus. I would consider this fraud. Outside of quitting my job do I have any recourse? If I were to quit what are my chances of ever seeing this money? I recently relocated from California to Tennessee. Where would I litigate this issue if warranted?

Thank you.

 

[army judge]

You'd litigate it in either state. Corporate clients are easy to sue. They are hard to beat, however. Bonuses are just that, bonuses. They aren't guaranteed income, like wages. You'll have a very hard time collecting that $55,000. One if your problems is the statute of limitations.

You can speak with your state's wage and labor agency. That'll let you know their position on bonuses.


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[RJRalston]

Even if my hiring agreement defined these as guaranteed bonuses?

 

[army judge]

Even if my hiring agreement defined these as guaranteed bonuses?

In my legal opinion, yes, based on what I know (which is very little about the specifics of your situation).

Hey, but it's always a great day when someone gets sued. Unleash the fury of that lawsuit, and heaven's angels will sing.


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[Patricia_Young]

Offer letters very rarely rise to the level of enforceable contracts. Only a California attorney who has reviewed all the documents can advise you if this is, in fact, a contract.