Bonus after termination
I was terminated from my job with no prior write-ups and when I inquired about my last paycheck and BONUS I was told I am getting my last check but that they arent giving me my bonus at ALL! My records show I would have over $2000 coming to me in June when bonuses are paid. Do I have any legal options to get my money? This is a framing/construction company and all foreman are on the same plan. I worked my but off for this money. Any suggestions
1 answer | asked Apr 30, 2004 02:07 AM [EST] | applies to Arizona
Answers (1)
Make a wage claim for your Bonus
A bonus falls within the definition of wages under Arizona's wage statute. Because it is less than $2,500.00, your claim can be made by going to the labor department of the Industrial Commission of Arizona. This state agency has authority to determine whether wages are due without the need to file a lawsuit. It has jurisdiction to decide claims up to $2,500.00. If the employer doesn't pay in accordance with the labor department's determination, you can seek three times the amount awarded by filing suit in court.
Whether the bonus is due depends on the terms and conditions set by the employer when the bonus plan was established. Sometimes employers have policies that require an employee to still be employed when a bonus or commission become due. This will probably be the issue you will be fighting about. If you know of anyone who left the company and was paid a bonus after leaving, that person's testimony will help prove what the employer has done in the past.
There is also a claim called a breach of the covenant of good faith and fair dealing. If the employer's policy says that you must still be employed at bonus tim to be entitled to a bonus, then the question arises whether the employer terminated you to keep you from receiving the bonus. Although it seems unlikely that an employer would fire a good employee just to save $2,000.00, if you can show that this was the reason for your termination, you can sue for breach of the covenant of good faith and fair dealing. This is not a wage claim, so the information in the first paragraph doesn't apply to this kind of claim.
For information about the Industrial Commission, you can look at the links page on my website, www.workrightsaz.com.
posted by Francis Fanning | Apr 30, 2004 11:00 AM [EST]
A bonus falls within the definition of wages under Arizona's wage statute. Because it is less than $2,500.00, your claim can be made by going to the labor department of the Industrial Commission of Arizona. This state agency has authority to determine whether wages are due without the need to file a lawsuit. It has jurisdiction to decide claims up to $2,500.00. If the employer doesn't pay in accordance with the labor department's determination, you can seek three times the amount awarded by filing suit in court.
Whether the bonus is due depends on the terms and conditions set by the employer when the bonus plan was established. Sometimes employers have policies that require an employee to still be employed when a bonus or commission become due. This will probably be the issue you will be fighting about. If you know of anyone who left the company and was paid a bonus after leaving, that person's testimony will help prove what the employer has done in the past.
There is also a claim called a breach of the covenant of good faith and fair dealing. If the employer's policy says that you must still be employed at bonus tim to be entitled to a bonus, then the question arises whether the employer terminated you to keep you from receiving the bonus. Although it seems unlikely that an employer would fire a good employee just to save $2,000.00, if you can show that this was the reason for your termination, you can sue for breach of the covenant of good faith and fair dealing. This is not a wage claim, so the information in the first paragraph doesn't apply to this kind of claim.
For information about the Industrial Commission, you can look at the links page on my website, www.workrightsaz.com.
posted by Francis Fanning | Apr 30, 2004 11:00 AM [EST]
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