What action can be taken against a company that is not paying promised performance incentives?

UPDATED: Sep 15, 2011

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What action can be taken against a company that is not paying promised performance incentives?

I am a full-time salaried employee of a company based in CA via a satellite office in TN. Every quarter, employees of this company are able to receive a bonus based on performance. This bonus was promised to an entire team at the end of last month. It was not paid. It was however delayed to the 15th of this month. Once again, it was still not paid. Several employees wrote letters and provided documentation to the senior manager of HR per escalation protocol. I just want to know what can be done if HR does nothing?

Asked on September 15, 2011 under Employment Labor Law, Tennessee


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You can sue--either individually, or in concert with similarly affected colleagues. If there is an agreement to pay bonuses at a certain time, and all the conditions necessary for the bonuses to be paid have been met, the company must honor that agreement. If it fails to do so, it can be sued for breach of contract. Obviously, you need to weigh the amount of bonus you hope to collect (since you can most likely only sue for the actual amount of money owed; i.e. not for additional compensation) vs. the cost of a lawsuit; that is why it would be a good idea to look to into hiring an attorney jointly, if several of you have been affected. Many attorneys will provide a free initial consultation to evaluate a case; it would be a good idea to consult with one. Good luck.

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