Can an employer put an expiration date on your bonus?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can an employer put an expiration date on your bonus?
I work in California. My company pays out quarterly bonuses in the form of gift
vouchers to stay at hotels in our collection. Can they legally place an expiration
date of 120 days on these vouchers since it is an earned/non discretionary
bonus?
Asked on April 18, 2016 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Yes, they can, so long as this was known to employees before they did the work which earned the bonus. No company needs to provide bonuses at all--it is voluntary to do so. Since it is voluntary, the law lets companies put terms and conditions on the bonus. The main limitation regarding earned or non-discretionary bonsus is that the employee must know of the terms or conditions or other limitations before doing the work; otherwise, if the "rules" are changed after the employee did the work and earned the bonus, the company breached the agreement or contract (the bonus agreement, even if oral/unwritten) pursuant to which the employee performed the work. Technically, if the company did this, an employee could sue to get the cash equivalent of the voucher, or an unrestricted voucher; as a practial matter, it may not be worthwhile doing so, however.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.