What is the law regarding the cancellation of a bonus?

Get Legal Help Today

 Secured with SHA-256 Encryption

What is the law regarding the cancellation of a bonus?

My husband is a manager for a large, international company. When he was promoted to manager he was told there would be no overtime pay but he would receive an annual bonus to make up for it. He currently works 50 to 60 hours per week with no overtime. It was announced yesterday that there would be no bonuses this year, as stock prices had taken a hit. There will be no additional compensation either. Bonuses are canceled company wide. We, and all of the other employees, counted on the bonus as part of our annual income and

depend on it. Is there any recourse?

Asked on October 25, 2019 under Employment Labor Law, Louisiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

If your husband had a written employment or bonus agreement guarantying him the bonus, then the employer was contractually obligated to pay him. If they do not, he could sue for "breach of contract" for the money.
However, without a written agreement for it, all bonuses are discretionary--at the will of the employer. The employer may, in this case, legally renege on a promised bonus and refuse to pay it. Only a written contract guarantees a bonus.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption