What to do if I was given a new contract at year’s end the year before last which included a pay raise and an end of the year bonus and while I received the raise I have still yet to receive the end of the year bonus?

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What to do if I was given a new contract at year’s end the year before last which included a pay raise and an end of the year bonus and while I received the raise I have still yet to receive the end of the year bonus?

Now, I am entitled to an end of the year bonus for the last year as well which I have not seen. Any time that I have contacted HR, they tell me that they will get back to me and I never hear anything. The company I work for did file Chapter 11 bankruptcy 5 months ago and I am told that my first bonus is being held up in that, which the company had 9 previous months to pay it. Is there anything that I can do to get both of my bonuses paid?

Asked on January 15, 2016 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If the company is in Chapter 11, until there's a resolution to it (e.g.  an approved plan), you won't know if or when or how much you'll get. The chapter 11 proceedings will stay non-current-operational debts (i.e. anything other than amounts that have to be paid now, on an ongoing or future basis, to keep the company running) while a plan is put together and approved--and unlike your weekly salary or wages, a bonus for past performance is not a current expenses, so it can be deferred by the bankruptcy process.
Note that while debts to employees have a certain priority over many (but not all) other debts, chapter 11 does typically result in adjustments to or reductions in debts, so you may not get the bonuses, or at least not all of them.


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