S/O bonuses, do you still have to work there

[gogreengowhite]

If you receive a bonus does your company require you to still be employed when the bonus is paid out or just by the end of the year?

My company is still employed and they don't pay them out until march.

My new boss is starting in January so she can get her bonus at her current job. She just had to be there on 12/31.

Just wondering what most companies do.

[noodleoo]

Hmmm... I'm not sure. But yeah, my company doesn't tell you what your bonus will be until mid-January and they don't pay them until mid-Feb. Kind of annoying.

[ESF]

Once I quit a job two weeks before Christmas and they still gave me a bonus anyway.

It shocked me because I hated them, and I wouldn't have imagined them to pay me a bonus at all, let alone give me one after I quit.

For one brief second, I regretted my choice to quit. Then I remembered they sucked, and were run by a racist, sexist, insane dirty old man, and cashed my check without further thought.

[tealblue]

We have to be employed here as of 12/31. Bonuses come out late Feb/early March.

[egishere]

I'm pretty sure you have to be employed when they come out which is feb/March. A lot of people leave after bonus time.

[Susie]

My firm requires that you still be employed when the bonus is paid out in order to get it.

Ours are quarterly rather than annual, so it's less of a big deal, but ideally when people are leaving they try to do so right after bonus payout (usually the 2nd payroll of each new quarter).

[cheezer]

You have to be employed on the date the bonus is paid. And I'd also assume that you couldn't have given your 2 weeks notice at that point because why would the company pay you a bonus if you're leaving?

This results in all turnover at the company happening in February or maybe March.

[drloretta]

IMO it's company dependent

[ddi741]

We have to be employed on the day is pays out. It is usually paid in March but I heard a rumor today, they are paying in April.

[Balki.Bartokomous]

Dec 18, 2014 13:17:07 GMT -5 @songforyou said:

Dec 18, 2014 13:09:35 GMT -5 cheezer said:

You have to be employed on the date the bonus is paid. And I'd also assume that you couldn't have given your 2 weeks notice at that point because why would the company pay you a bonus if you're leaving?

This results in all turnover at the company happening in February or maybe March.

Actually, I think that it's only fair to pay the bonus regardless of whether someone left or is leaving since it is usually based on performance from the year before.  I know most companies don't do it, but it doesn't make it right.  And like you said, many people just hang in, defer offers, etc. until they receive the bonus.

I agree. I've always wondered how the requirement to still be employed at the time that something is paid out is legal if it had already been earned.

[v]

Current firm: bonus is based on billable hours from 5/1-4/30; letter announcing bonus amount is sent in late July; bonus paid out in late July. You have to be there (and in good standing -- haven't given notice; haven't been told to leave) on July bonus pay date.

Former firm: bonus based on hours from 1/1-12/31; announced some time in December; paid out in February or March. Same deal about being there and in good standing on day paid out.

So in either case, you had/have to be there about 3 months after you earned the bonus to get the bonus.

[lmdbww]

Dec 18, 2014 12:46:17 GMT -5 scm1011 said:

We have to be employed on the day bonuses are paid out...

This makes absolute sense to me.

[delawarejen]

Mine is based on July - June, and you still have to be employed in mid-September.

[cheezer]

Dec 18, 2014 13:31:27 GMT -5 Balki.Bartokomous said:

Dec 18, 2014 13:17:07 GMT -5 @songforyou said:

Actually, I think that it's only fair to pay the bonus regardless of whether someone left or is leaving since it is usually based on performance from the year before.  I know most companies don't do it, but it doesn't make it right.  And like you said, many people just hang in, defer offers, etc. until they receive the bonus.

I agree. I've always wondered how the requirement to still be employed at the time that something is paid out is legal if it had already been earned.

I don't think it's necessary earned though.  Some companies have a bonus contract, if the company makes $x, you get y%, etc.  That I can see having to pay out. 

At our company, bonuses are discretionary.  Even though bonuses are usually over 50% of our income for the year, we could be paid nothing because we have no contract and no bonus is "owed". 

People also decide to leave because they receive what they believe is a bad bonus (usually they deserve it IMO but that could be up for debate). 

[v]

Dec 18, 2014 13:52:04 GMT -5 cheezer said:

Dec 18, 2014 13:31:27 GMT -5 Balki.Bartokomous said:

I agree. I've always wondered how the requirement to still be employed at the time that something is paid out is legal if it had already been earned.

I don't think it's necessary earned though.  Some companies have a bonus contract, if the company makes $x, you get y%, etc.  That I can see having to pay out. 

At our company, bonuses are discretionary.  Even though bonuses are usually over 50% of our income for the year, we could be paid nothing because we have no contract and no bonus is "owed". 

People also decide to leave because they receive what they believe is a bad bonus (usually they deserve it IMO but that could be up for debate). 

My bonuses have always been STRICTLY hours based (if you bill x, you get y, no matter how good or bad you are at your job) and have been paid out several months after the period the hours were based on, and you had to be there on payout day to get it.  So no, they don't have to pay it out even if it is earned.

[laurao]

For DH it's based on 9/1-8/31, and you only find out in December, received in December

[Deleted]

2014 bonuses will be paid in March. Mine won't be paid until I return from Mat leave though (leave will be 3/1-5/1ish)

You not only need to be an active employee, but you can't have submitted a resignation either. Like if payouts are 3/1, you better not submit resignation until 3/2.

[Balki.Bartokomous]

Dec 18, 2014 13:52:04 GMT -5 cheezer said:

Dec 18, 2014 13:31:27 GMT -5 Balki.Bartokomous said:

I agree. I've always wondered how the requirement to still be employed at the time that something is paid out is legal if it had already been earned.

I don't think it's necessary earned though.  Some companies have a bonus contract, if the company makes $x, you get y%, etc.  That I can see having to pay out. 

At our company, bonuses are discretionary.  Even though bonuses are usually over 50% of our income for the year, we could be paid nothing because we have no contract and no bonus is "owed". 

People also decide to leave because they receive what they believe is a bad bonus (usually they deserve it IMO but that could be up for debate). 

If bonuses are discretionary, then I can sort of see it.

But really I was thinking more about situations like at my company: 80% or 90% of our bonus is tied to the company achieving revenue & EBITDA targets & only 10-20% is based on "individual contributions". It's clearly stated that it's for 1/1 through 12/31 so for them to say we only get them if we're employed when they're paid out in March is kind of BS.

[L]

You have to still be employed when the prior year's bonus is paid out mid-February. Same goes for the company's 401k contribution (3% of the prior year's salary contributed all at once in February).

They consider it a retention tool rather than compensation for past performance.

[cinco]

At my old company you still had to be employed.

[y4m]

Still employed on the date it is paid is how it has worked everywhere I've been.

[definitelyO]

Current company - you just have to be there as of year end - these are annual bonus amounts set by profit % w/o any discretionary.
Old company - you had to be there when the bonus was paid out (end of February) 100% discretionary bonus

[flygirl22]

Paid out even if you aren't working here anymore , you don't have to be here the entire year either, your bonus would be prorated for your time.