What has anyone experienced in requiring a year-end bonus to be paid back if the employee leaves within 6 months? Thanks

I'm confused, which is not too uncommon, about the question. You paid a year end bonus to an employee and the employee left the company 6 months later?

If that is the case, I wouldn't want to be the one trying to collect back the bonus you previously paid.

I think it would be exactly the same as collecting any overpayment of salary to an employee who has left the company, even if your bonus program explicitly states that these funds must be returned. If it doesn't say that, you have no right to tht money.

WOW....Am I the only one who thinks this is pretty tacky??? My lifelong understanding of bonuses is that they are paid for PAST performance. If you can find me a company that pays a bonus BEFORE I do the work, please send an application!!!

The only exception I can think of is the year that our CEO paid bonuses based on our "Commitment to the Future". All employees received them, except the ones who had given their notice to quit. Of course, they complained, but the explanation was that the commitment to the future was not proven out by their resignation!



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Good Luck!!!
Sheila K 8^)

I agree with Sheila, although I'm not sure the word tacky is strong enough.
If the "bonus" is paid in advance and there is no agreement (probably written) about paying it back under some set of circumstances, then the EE would just laugh at the ER for making that request.

If there is a written agreement, then OK but I would not use the word bonus to describe such a situation.

tspitzer,

Going back a life time ago (prior job) I researched "bonuses" and found several California wage laws that would conflict with a recovery effort. I really don't know if they are still in effect but your state wage laws would be the first place that I would look. As I recall, all bonuses are paid for prior performance or the performance of some specific action.