Employment Law Attorneys

Bonus1 min read

Bonus is also a negotiated term in employment. The primary function of a bonus is to create incentives to perform. Obviously, the better an employee performs, the more bonus one receives. Bonus is set up on a range of percentage targets. Many companies set target bonus ranges for executives, such as 75% of target. However, an employee can negotiate the target range with the employer.
Many employers, especially in the finance industry, attempt to control bonus by stating that an employee must remain employed when the bonus is awarded. In many states, such as Connecticut, such a bonus policy/program is illegal. The bonus is considered a “wage” the employee is entitled to receive. This situation arises most often when the employer terminates the employee’s position prior to the bonus payment. The employee must prove he or she was substantially fired in order to avoid payment of the bonus. In other words, the denial of bonus was arbitrarily made. Employees should contact the state department of labor and file a complaint. These DOL agancies have very successful in returning bonuses to employees.