Q: Can I be paid my annual bonus and retroactive pay if I resign before it can be paid out?
At my company, we receive a bonus each year if we meet revenue and customer service goals. I have been with this company for a little over five years. Our latest bonus is going to be paid out soon, which measured progress from July 1st 2020-July 1 2021. Bonuses and retroactive raises should be paid out at the end of August. However, I have resigned and my last day will be Aug. 27th. If the bonuses have not been distributed by my last day, am I still legally entitled to it even though I'm no longer working there?
A:
The answer to your question depends on the terms of your bonus plan including whether there are express terms that address this and whether the bonuses were discretionary or not. Take your plan to an attorney to review the terms and learn about the specifics of how the company has administered the bonuses prior to now.
Good luck to you.
A: Whether you would still be entitled to the bonus is determined by the language of your employment agreement and whether you have completed all things required to earn the bonus. Often employers require employees to be still employed at the time the bonus is issued, but it depends on the language of the contract.
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