Am I entitled to bonus when fired?
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Am I entitled to bonus when fired?
I work in the automotive industry as a salesperson. A bonus was setup for the weekend. Sell a certain new vehicle and get $1000 per unit. I sold 2. Sunday. On Thursday I was fired because the general manager did not like how I obtained those 2 deals. He did not pay my bonus. And stated bonuses are at his discretion. And that this was a autocracy nothing happened unless he says so. Do I have any way of getting my $2000?
Asked on May 5, 2018 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
A bonus is not discretionary if there was an objective, quantifiable target: i.e. that you would receive a $1,000 bonus each of a certain type of vehicle you sold over a certain weekend. "Discretion" means at free choice: by having defined targets, there is no free choice, however. What you describe appears to have potentially formed an enforceable bonus agreement (whether written or oral/unwritten--most unwritten agreements are legally enforceable, though obviously more difficult to prove than written ones): there would have been a contract or agreement that if you sold certain cars, you'd get certain payments; since you performed your end of the deal (sold the cars), they would be obligated to perform their obligations (pay you). While no case is certain (and never believe any lawyer who less you that a case is guaranteed), what you describe suggests you do have a reasonable case for your bonus: it appears that you could sue the former employer for the money (such as in small claims court, as your own attorney or "pro se") with a reasonable chance for success.
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