In California, can a employer legally take a bonus away?

My husband's boss took away his bonus. My husband gets a monthly bonus from his job. Although he was not given a verbal or written reprimand, his boss took away his March bonus because he heard from other employees that he was not performing up to par. (I can not confirm the truth in all that, but moving on...) My husband works construction. For each job that is completed, a percentage of the job earnings are set aside for the bonus to be given the following month. This company has done some illegal things to its employees, so we would like to know if this was legal. thanks
Additional Details
If this is illegal, what are his rights. This company also did this to several other employees this month

Laissez-Faire Guy

Well, if there is nothing in writing, no contract, the bonuses are essentially up to the whim of the employer to hand out as he sees fit. In other words, you can't expect them unless you are told there will be one, or until one is given.

ibu guru

From your description, "percentage of the job earnings," this may be a profit-sharing arrangement. No profit, no bonus. Otherwise, a "bonus" is not part of wages or salary, it is just something extra under certain conditions, even if it is written into a contract. Bonuses can never be depended upon! That's why it always best to put bonuses away into savings; don't get used to them as a part of income.

Construction is down across the country. New construction is not being sold, and even for remodeling, prices charged are under stiff competition and homeowners are becoming slower to pay, so profits are way down - if there is any profit at all. Some contractors (like my landlord) are taking anything to keep their crew busy so that at least they will have some wages.

Right now you need to be concerned about your husband's job, period. And he has to perform at his peak -- only the best are the last to be laid off.

Mel

This depends on how (or whether) the bonus plan is written. If it is an "earned" bonus, which it appears to be (each job completed "earns" the employee a % of the revenue), then your husband is entitled to receive the bonus. If it is solely discretionary (one month the boss feels generous and the next, not so much), he is not entitled to receive anything.

Either way, withholding a bonus purely on hearsay of poor performance is not a good idea. Depending on the amount involved and the number of other employees who are willing to complain, you may want to check with the dept of labor in your area - www.dol.gov. They can advise you for free if you have a claim.

Good luck.

Richard L

The answer to this question is not a simple yes or no. It depends on the particular plan under which the bonus is paid. Generally, if a bonus plan is not entirely discretionary, and payment is based on the achievement of certain stated objectives, and the employee or the unit achieves those objectives, then payment is mandatory. However, most plans have built-in limitations to this, such as the need to maintain a certain performance level, or to be employed at time of payment, or the like. Have your husband see if the bonus plan is in writing. If it is not in writing or if the written plan does not have limitations to payment, then he likely has good reason to complain.

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