Wage theft is a relatively common phenomenon. Employers sometimes manipulate payroll records or lie to their workers about their rights to pay them less than they deserve. Although many wage theft lawsuits begin with a refusal to provide minimum wage or overtime pay, bonuses can also lead to wage and hour lawsuits.
Employers that promise bonuses to workers in their contracts or in company-wide programs generally need to uphold those prior commitments. Refusing to pay a promised bonus may constitute a wage and hour violation under certain circumstances.
When do workers have the right to a bonus?
Federal and California state employment statutes group bonuses into two primary categories. Some companies provide discretionary bonuses. They may share good fortune with key workers after a particularly profitable quarter or year. Such bonuses are a perk of employment but are not considered part of the worker’s base wages.
Non-discretionary bonuses are different. Some employment contracts include performance metrics, sales quotas or other criteria for qualifying for bonuses. In such cases, the worker has a right to receive the bonus so long as they meet the standards outlined in the contract.
Other times, worker bonuses may be part of a program to incentivize better job performance. If the company held a meeting, sent out a memo or emailed certain employees about a new bonus program to motivate better job performance, then the promised bonus could be non-discretionary, meaning that the worker has a right to receive it if they fulfill the mandatory criteria.
In cases where workers have not received their non-discretionary bonuses as promised, pursuing a wage and hour lawsuit might be an option. Reviewing contracts and handbook information about bonuses with a skilled legal team may be the first step toward securing the full pay promised to workers.