If my company doesn’t want to give me my bonus eventhoughit is stated in my contract, is there anything that I can do?

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If my company doesn’t want to give me my bonus eventhoughit is stated in my contract, is there anything that I can do?

My contract states: Bonuses: The company agrees that you shall be eligible to receive an annual bonus commencing in calendar year X equal to five (5%) percent of your Base Salary. I had ask the status of the bonus twice and I haven’t got an answer. Is there anything that I can do?

Asked on January 19, 2012 under Employment Labor Law, Connecticut

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The question is, is the bonus mandatory or discretionary?

If the company is required to give you a bonus under certain circumstances, and those circumstances occured, they have to give it to you; if the don't, you may sue for it. For example, say that the bonus agreement provided that you would get a 5% bonus if you hit certain sales numbers (if you're in sales) or if the company overall hit its financial targets and that occured: then you have to get the bonus.

But if the bonus is discretionary--for example, it was that you are eligible for a 5% bonus in the discretion of management--then they could legally use that discretion to not provide the bonus.


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