Los Angeles, CA asked in Employment Law for California

Q: I was offered a retention bonus in October half was paid out, other half was supposed to be this week but was canceled

Back in October, the president of our company extended a retention bonus to me to be paid out in two lump sums, one in October and one in April if I were to stay with the company for another year. The October portion was paid out, but I was just informed due to COVID, I would not be paid the April amount. Nowhere in the paperwork does it say it wouldn't get paid out for any circumstances outside of termination. (And I would be expected to pay it back if I were to resign before the one year mark). Should I just keep quiet? I don't want to put my job at risk by fighting this, but this doesn't seem right to me (or legal)

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2 Lawyer Answers

A: The Covid-19 crisis has so severely affected businesses that it is understandable that the company has had to pivot. Whether that pivot gives you a legal claim will depend on the terms of the contract with your employer.

As to your concern about risking your job, that is another question altogether. Any challenge of their decision can turn an employer against you. Whether you can prove the retaliation to be based on you engaging in protected conduct depends on whether the employer makes the mistake of providing evidence of that bad motive. You have to decide how important the issue is to you, and timing may be crucial. Perhaps you wait to challenge this decision after the heart of this crisis passes. If the agreement to pay you was verbal, you have two years from the "breach" to make a legal claim, so ticking off your employer right now may not be the best time, given the difficulty facing you if you were to be terminated in these times.

Good luck to you.

A: I had a case just like this several years ago.

I represented 4 employees who were promised bonuses if they remained to assist the company in a sale transition. They stayed and when the transition was complete, were told "Hasta la vista babyee" The 4 sued in small claims and the cases were consolidated, I got hired when the employer appealed the adverse decision. In California, you can have an attorney in a small claims appeal and get an additional $250 for attorney's fees if you win. I will never forget this case. The judge took the bench and let the employer's high priced attorneys (2 of them) from the big firm give an opening statement, then he said call your first witness. I stood up and said I wanted to give an opening statement- DENIED. They called the HR person, questioned him, finished, Judge said step down. I said, excuse me please I would like to cross-examine, DENIED. Called a second witness, examined, step down. I asked for cross- DENIED. My clients are looking at me like---WTF??? what good are you? I asked to call witnesses- DENIED. Other side got to make a closing statement, when finished the Judge looked at me. I asked: "Do I get to say something now?" The judge said: OK, make your closing argument. I said: "if called upon to testify, my clients would testify under oath........." I sat down about as dazed as I ever hope to be. Judge said: Judgment for the Plaintiffs in the amounts prayed for plus costs and $250.00 each for attorney's fees.

This occurred back when small claims was $2500. now it is $10,000. You might consider that route.

Here is my opinion. I like what Neil said below. He is right about this COVID situation, but that doesn't mean you give up on it. Spend a couple hundred dollars with an attorney to have them help you put together a small claims presentation, they can write you a brief and attach documents as exhibits. Your name will be on it. File the small claims case after this COVID crisis is over or if you leave this job.

Meanwhile, start looking for another job.

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