Houston, TX asked in Employment Law for Texas

Q: Annual Performance Bonus shortchanging recourse?

I run a plant after hiring in mid year. Performance target was hurt because of issues in Jan and Feb 23, before my hiring.

Since my arrival, performance (99.7%) exceeded the target (99%). Even if my performance was 100%, the target would not have been achieved for the year and I didn’t know this upon hiring with the company.

My bonus is prorated for the time actually worked but I’m penalized for the entire year when I wasn’t even employed.

If bonus is prorated, shouldn’t my performance be as well (I would be eligible for 100% instead of 75%)?

State is Texas, company is international.

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1 Lawyer Answer
John Michael Frick
John Michael Frick
  • Frisco, TX
  • Licensed in Texas

A: It depends on what your agreement says. In interpreting the agreement, the court can consider the facts and circumstances existing when you signed the agreement, any industry custom, and any past course of dealing. So, for example, if in the past, the company determined bonuses based on prorated performance as well as prorated time worked, you could argue that is how your agreement ought to be interpreted.

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