What is the name of your state? MA & MI
My department (software installers/consultants) has an incentive bonus plan as part of our overall compensation plan. The incentive plan contains wording that reserves the right of the company to make changes to the plan at any time with the provision that it be in writing and approved by the appropriate ppl.
The basics of the plan are:
-Target amount of the plan is equal to 25% of your base salary.
-Amount earned is based upon a formula modeling a percentage of time considered "utilized" or value added.
-Plan is based upon a quarterly schedule which mirrors the fiscal quarter of the company.
Issue is this...
-One project was being performed pro-bono.
-People asked to participate in this project were provided (in writing) confirmation that the time would be considered "utilized" with respect to the bonus plan.
-Quarter ended July 31st.
-Plan calls for payment following the release of quarterly results which happened on 9/2.
-Queries to the plan's administrator regarding the final calculations followed on 9/5.
-Message was delivered on 9/10 that the time spent on "project x" wasn't going to be counted in the calculations.
Questions:
-Is this allowed by the "we can change this plan whenever we want " clause?
-Does the timing of the change have any bearing? Wouldn't these amounts be considered earned but unpaid?
Not that fair enters into the interpretation of law, but I'd expect that sums of monies earned under a specific plan shouldn't be subject to modification after the fact, only those going forward...
My department (software installers/consultants) has an incentive bonus plan as part of our overall compensation plan. The incentive plan contains wording that reserves the right of the company to make changes to the plan at any time with the provision that it be in writing and approved by the appropriate ppl.
The basics of the plan are:
-Target amount of the plan is equal to 25% of your base salary.
-Amount earned is based upon a formula modeling a percentage of time considered "utilized" or value added.
-Plan is based upon a quarterly schedule which mirrors the fiscal quarter of the company.
Issue is this...
-One project was being performed pro-bono.
-People asked to participate in this project were provided (in writing) confirmation that the time would be considered "utilized" with respect to the bonus plan.
-Quarter ended July 31st.
-Plan calls for payment following the release of quarterly results which happened on 9/2.
-Queries to the plan's administrator regarding the final calculations followed on 9/5.
-Message was delivered on 9/10 that the time spent on "project x" wasn't going to be counted in the calculations.
Questions:
-Is this allowed by the "we can change this plan whenever we want " clause?
-Does the timing of the change have any bearing? Wouldn't these amounts be considered earned but unpaid?
Not that fair enters into the interpretation of law, but I'd expect that sums of monies earned under a specific plan shouldn't be subject to modification after the fact, only those going forward...
