Incentive Cuts
My company's parent company has forced them to cut over time and incentives. However I have written documentation which states that my incentive is part of my salary. Is my company entitled to cut my incentive?
1 answer | asked Jun 2, 2009 10:07 PM [EST] | applies to New York
Answers (1)
Is It a Contract?
Most people start working for an employer with little more than an understanding of a start date. There is little, if anything, in writing.
Nonetheless, the employment relationship is governed by a set of rules. Those rules are set up by the operation of law. In New York State, the basic rule is the employment at will doctrine, a rule which generally does not favor the employee.
An employer and employee can depart from the employment at will doctrine by entering into a contract. A contract is mutual, and requires each party to express an intent to be bound.
A contract in New York need not be in writing, but, believe me, it is infinitely easier to prove the terms of a contract if it is in writing.
But even if it is in writing, that does not mean it cannot be changed. You see, one thing that a good contract does is define how long it will be effective, and how it can be changed.
I've said all this because your employer might be bound to pay your incentive, if you and the employer had a contract requiring the payment of the incentive. However, I don't know whether even the documentation that you refer to rises to the level of a contract. Even if we assume that the documentation constitutes a contract, I don't know whether the employer had an out. That is, the contract could still have given the employer the right to change the terms and conditions of your employment unilaterally. So, your employer may well have the ability to cut your incentive.
If you want a definitive answer, you need to set up a consultation with a qualified attorney to discuss your particular situation in detail.
posted by David M. Lira | Jun 3, 2009 12:29 PM [EST]
Most people start working for an employer with little more than an understanding of a start date. There is little, if anything, in writing.
Nonetheless, the employment relationship is governed by a set of rules. Those rules are set up by the operation of law. In New York State, the basic rule is the employment at will doctrine, a rule which generally does not favor the employee.
An employer and employee can depart from the employment at will doctrine by entering into a contract. A contract is mutual, and requires each party to express an intent to be bound.
A contract in New York need not be in writing, but, believe me, it is infinitely easier to prove the terms of a contract if it is in writing.
But even if it is in writing, that does not mean it cannot be changed. You see, one thing that a good contract does is define how long it will be effective, and how it can be changed.
I've said all this because your employer might be bound to pay your incentive, if you and the employer had a contract requiring the payment of the incentive. However, I don't know whether even the documentation that you refer to rises to the level of a contract. Even if we assume that the documentation constitutes a contract, I don't know whether the employer had an out. That is, the contract could still have given the employer the right to change the terms and conditions of your employment unilaterally. So, your employer may well have the ability to cut your incentive.
If you want a definitive answer, you need to set up a consultation with a qualified attorney to discuss your particular situation in detail.
posted by David M. Lira | Jun 3, 2009 12:29 PM [EST]
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