Will i be eligible for promised bonus and commission at my job if i quit?

Question

I am about to put in my resignation at my job. I will be giving my employer 6 weeks notice and my last day will be January 2, 2007.

1. I have profit sharing which pays out on March 31st 2007 for company profits from Jan 1 06 to Dec 31 06. No where in the profit sharing plan does it have to say that i am employed from jan - march to get paid. If i quit after the full year am i legally entitled to get paid.

2. If i have commission coming in on a sales contract that has been signed by a customer but they will not be paying the amount of the contract due until 4 weeks after i quit, will i still be eligible for that commission if the contract was executed before i left?


Thanks for your help.

Answer 1

Generally, you must be "actively employed" at the time bonuses and commissions are paid.

Having said that, I think that you are eligible for both.

The bonus, since the payout is based on the calendar year Jan - Dec, 2006, and you were "actively employed during that period, and obviously contributed to whatever success the company had during that time, should be due and payable to you after March 31, 2007.

The commission, you invested time and effort into the sale, you were "actively employed" at the time of the sale, and if the customer paid the contract amount before you left, you would have received the commission. I believe that you are entitled to that payout as well.

Check with the local Wage and Hour Division of the State Department of Labor to determine if you are eligible for the payouts, then ask the HR Department if you will be getting them. If they say no, file a complaint at the Wage & Hour Division.

Answer 2

More than likely no to both.

Profit sharing is an incentive to award the employees for making the company profitable and giving them an incentive to keep it so. If you resign, you are no longer contributing to the company's success, even though you have in the past. Especially if you are going to a competitor and you WILL be asked. I lost a previous year's bonus increase when I resigned mid January and my last day was two weeks later. They were good to me, it just did not allow me to get the additional 2% after all financials were completed as I was not staying.

Commission will likely be paid until the current quarter, and may include this one. You did help get the contract, but someone else will have to take it over and do the work for the first 4 months of the year, so it's unlikely you will profit from it. The company could use the fact of when the money changes hands as a legal arguement. They paid you a salary to do your job which included gaining new business and you did so.

It depends on you contract and the way the company treats their employees. See if you can get a copy of the company rule book to see if that's outlined. Contact ex-employees on how they were treated. Ask during your exit interview.

Answer 3

Prior to your resignation, it is best to check with HR, to ensure there was no "fine print" regarding leaving the job and forfeiting such commission and bonuses.

As long as there is no fine print, I would place in the resignation letter, references that indicate you are entitled to certain commissions and/or bonuses. This establishes an understanding that you will be compensated in the future, and gives you a basis for suing them if they don't pay you. Chances are that "en lieu" of said future payouts, they may alternatively give you a settlement when you leave - this will satisfy both parties.

Answer 4

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Answer 5

Not on the profit shairing and bonus. Yes on the commission because it is money earned.

Answer 6

Not if you work for me