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Year End Bonus - Entitlement?

Discussion in 'Wage and Hour, Overtime' started by ctut, Feb 21, 2020.

  1. ctut

    ctut Law Topic Starter New Member

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    Jurisdiction:
    Ohio
    I have been terminated by my employer this year (alleged reason: performance). Severance agreement says that short term incentives are not included, yet presents an Exhibit which says that the company policy requires that any employee needs to be employed by the company on the day of the bonus payment to be entitled for the bonus. For any given year, typical year end bonus payments happen in March of the following year. I'd like to find out how courts would view this case under Ohio/Federal law. Am I entitled to my bonus (as an earned right), or not? Thanking you in advance.

    I have been terminated by my employer this year (alleged reason: performance). Severance agreement says that short term incentives are not included, yet presents an Exhibit which says that the company policy requires that any employee needs to be employed by the company on the day of the bonus payment to be entitled for the bonus. For any given year, typical year end bonus payments happen in March of the following year. I'd like to find out how courts would view this case under Ohio/Federal law. Am I entitled to my bonus (as an earned right), or not? Thanking you in advance.
     
  2. PayrollHRGuy

    PayrollHRGuy Well-Known Member

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    Things like bonuses are contract issues unless the bonus is used to get you to a federal or state-required minimum.

    I don't know what you mean by

    Not included in what?

    There you go.
     
  3. ctut

    ctut Law Topic Starter New Member

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    My year end bonus for 2019 is not included in what the Company is offering me as part of the severance package they are providing under the Separation Agreement and Release they'd like me to sign.
     
  4. PayrollHRGuy

    PayrollHRGuy Well-Known Member

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    If the Exhibit was part of the severance agreement or part of a pre-existing employment agreement or policy you are SOL.
     
  5. zddoodah

    zddoodah Well-Known Member

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    If the policy is that you have to be employed on the day of the bonus payment to have an entitlement and you're not employed on that day, it seems pretty obvious how that would turn out. Neither any state nor the federal government has a law that prohibits such a policy.
     
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  6. ctut

    ctut Law Topic Starter New Member

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    I did not leave the company on my own will, but was terminated (2 months prior to pay day). Would that not factor in the court's decision on whether I was entitled to such bonus or not.
     
  7. Zigner

    Zigner Well-Known Member

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    Based only on what you've said...nope. It's pretty ctut and dry.
     
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  8. ctut

    ctut Law Topic Starter New Member

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    You said "based on only what you've said", what other factors play into this decision?
     
  9. Zigner

    Zigner Well-Known Member

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    There could be factors that we are unaware of.
     
  10. zddoodah

    zddoodah Well-Known Member

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    Given that you asked the question in the negative, the answer is yes -- i.e., it doesn't matter that you were fired.
     
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  11. cbg

    cbg Super Moderator

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    IMO, if it did factor into the court's decision, it would not favor you.
     
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