QUESTION
Bonus would be paid out in 2012 for work in 2011; left job after 5 months; told no payout for not working all year (not written all year was required)
Asked on Mar 04th, 2012 on Business Law - Minnesota
More details to this question:
I had been employed with this company for 4 years prior to this new contract. The contract never stated in order to be paid in 2012, one must work all of 2011. It simply states, and I quote, "2011 Discretionary Bonus Ptential: 15% of Base Max (Applicable if 80% of 2011 Company EBITDA Goal is Met - Paid out February 2012)
2 ANSWERS
William/J Joanis
"Discretionary" and "potential" are enough to relieve the employer, without more. You would need something else that actually bound the employer.
Answered on Mar 10th, 2012 at 4:52 PM
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1 Award
In the absence of an express promise to pay bonus compensation following the termination of an employee's employment, the employer in an at-will employment state has no duty to pay it. The language in question indicates clearly that it is "discretionary" and that it is merely "potential" -- in other words, it's the maximum, with no duty to pay anything. You should consult with your own attorney regarding this matter; this isn't legal advice.
Answered on Mar 04th, 2012 at 6:21 PM