W-2 Compensation dispute with Prev Employer

[shanesays19]

What is the name of your state? -- Pennsylvania

This is in Pennsylvania.

After last ady of work, previous employer states that W-2 compensation for last week of work (salaried employee) was paid against a bonus that he paid the previous week. he stated that he informed the payroll company to reduce the bonus amount by how much extra W-2 compensation i was due.

Is this legal? Do I have any rights? How far back can an employer go on reducing bonuses you are paid against the W-2 compensation you are due at termination?

 

[cbg]

What kind of a bonus was it? Is there a written bonus plan? What is it based on? Is it considered deferred compensation?

Are you exempt or non-exempt?

Much more information is needed.

 

[shanesays19]

Thanks for your quick reply.

The bonus plan is detailed in my employer agreement - unfrotunatly, my employer never signed this agreement (whcih I didn't find out till the day I left).

The check is for the Bonus for August as noted in the memo field of the check.

I am not sure of exempt or non-exempt - don't know quite what that means.

The bonus was not DC of any form - it was a bonus based on business profitability (supposedly, he never actually did it how stated in the unsigned agreement) paid directly to ee's via check, monthly.

 

[cbg]

You're going to need to show the agreement to a local attorney.

Bonus plans are often non-enforceable if they are not part of a deferred compensation plan. Without seeing the terms it's next to impossible to say if this was legal or not.

BTW, an exempt employee is one that is exempt from overtime; an employee whose job duties allow for him to be paid on a strict salaried basis. A non-exempt employee is one who is (generally) paid on an hourly basis and receives OT for any hours over 40 in a week.

 

[shanesays19]

The unpaid monies are not bonus money. let me clarify that I did not recieve my last W-2 compensation paycheck ie. regulary salary.

When i asked about it, i was told that the payroll company was instrcuted to deduct the W-2 i was due from my last bonus that I had recieved before i left.

Can the employer deduct W-2 compensation from money that was paid previously directly from his checking account as a bonus?

 

[shanesays19]

Also, there is a space on the agreement for the ER to sign, yet he never did.

Does this mean the agreement is not enforceable?

 

[cbg]

I understand. Here is the issue:

IF the bonus agreement is enforceable, then they cannot deduct anything from it and you would still be due the monies they deducted.

IF the bonus agreement is not enforceable, then they MAY, depending on state law, be able to claim that you had been overpaid with the bonus and therefore no wages were still outstanding.

In my state, you would have to be paid at least minimum wage for any hours worked in the last pay period, but not all states look at this the same way.

Whether the missing signature invalidates the agreement depends on a number of factors we cannot evaluate in this setting.

I understand that what you want to hear is that your employer violated the law and that you can go after them for the monies you feel you are still owed. And you MAY be able to do so. But I can think of situations in which your employer may have acted lawfully, and there is no way we can gather all the factors that would be needed to make that evaluation, in this setting.

You are going to have to find an attorney to look at the agreement. Some things are simply beyond the scope of a message board.

 

[shanesays19]

i appreciate all your replies! Very informative.