Is Your Employer Withholding Your Bonus? Contact Our Los Angeles Bonus Disputes Lawyers
Workers in many industries depend on bonuses in addition to whatever wage or salary they make. While an employer is not required to offer them, once an employer promises one or has an existing bonus program, they may become obligated to pay employees who qualify for the bonus.
Contractual Obligation
Courts show they have an increasing desire to identify schemes involving companies claiming their bonus program is discretionary. Still, their program meets the legal criteria for being a contractual obligation. Law courts are now taking steps to consider all facts relative to such cases. This includes determining if it has been a company’s historical practice to pay bonuses to its employees regularly. A company that does this may have created a contractual obligation to pay bonuses.
California Law
Los Angeles lawyers for commission bonus withholding know in California, there are two different types of bonus categories. One is discretionary, and the other is non-discretionary.
Discretionary Bonuses
These are considered sums paid to an employee as a gift on holidays or special occasions. They are often given as a reward for good service. These bonuses are not measured or calculated based on work product or efficiency. They are not intended to be used for determining an employee’s regular pay.
Non-Discretionary Bonuses
Bonuses are based directly on a company’s work-performance policy. They could be part of a written employment contract, implied company obligation, or a verbal agreement. Evaluations are based on job performance, measured, and could be based on sales, revenue targets, or other pre-determined types of accomplishments.
Bonuses Paid Timely
An earned bonus is considered the same as wages in California. According to California Labor Code 204, an employee is entitled to receive timely payment of their bonus. It must appear on an employee’s pay statement as it is subject to withholding taxes.
Bonus After Termination
The law protects an employee’s bonus even if they get terminated. An experienced Los Angeles employment lawyer knows that when an employee gets terminated, they are legally entitled to their earned bonus. According to California Labor Code 201, when an employer fires an employee, the employee’s earned and unpaid wages are payable and immediately due at the time of their termination. If they quit their job they must be paid 72 hours from the last day of employment or immediately if the employee gave 72 hours notice.
If you or someone you know is involved in a bonus dispute, we recommend pursuing legal representation. At Mann & Elias, we have over 40 years of combined experience helping employees in disputes with their employers. We can help with any bonus dispute you may have.
About Mann & Elias
The Law Offices of Mann & Elias is an employment law firm that provides guidance and legal support for individuals facing issues in the workplace. We represent clients at every state and federal court system level in lawsuits regarding discrimination, wrongful termination, unpaid wages, and more. When your case is in our hands, we hope to minimize stress and concerns associated with work.
Workplace disputes and negotiations can be complicated and uncomfortable between an employee and employer. In many cases, an employer can retaliate, causing individuals to feel that they are at a great disadvantage in the company. When you retain one of our lawyers, you will be well-protected and advised. While there are thousands of lawyers to choose from, we strongly believe our success is based on:
- 50+ years of trial experience
- Excellent advocacy skills
- Intense preparation and research
- Quality care
Since our partnership began over 20 years ago, we have settled hundreds of claims, completed 100 jury and bench trials, and recovered more than $18 million in settlements. In the end, our goal is to understand what you need and achieve the best outcome for you by focusing on those needs. For dedicated representation with no upfront fees, give us a call at 323-866-9564 or email info@mannelias.com.