What to do if my previous employer claims that I do not qualify for profit sharing because I left the company before the end of the fiscal year?

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What to do if my previous employer claims that I do not qualify for profit sharing because I left the company before the end of the fiscal year?

This is from their handbook. EMPLOYEE POLICY MANUAL: “The Board of Directors at their sole discretion, may provide a profit share benefit to eligible employees. Regular full-time and regular part-time employees are eligible to participate. Payments, if any, are determined by the amount of local profit earned by the Company, the gross wages of eligible employees and the rate established by The Board of Directors. Supervisor and General Manager consent is required to participate in any Company profit sharing plan approved by the Board of Directors”.

Asked on December 7, 2012 under Employment Labor Law, Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

"Sole discretion" means esssentially "whim": in this case, it means that the company can decide whether to provide profit sharing--or not--at will, for any reason. When something is left to an employer's  sole discretion, there is no legal claim if not given it, since the employer has an absolute right to not provide it.


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