Typically, courts will only require employers to honor their promises to pay employee bonuses when those promises were part of the employees’ employment contracts. Employers will usually promise workers bonuses in exchange for workers promising to meet specific goals or produce certain results with their work.
Bonuses will be promised to workers in the anticipation of future performance instead of being paid as rewards for work the employees already completed. When employers promise workers bonuses after they have already reached specific goals, courts will typically consider those promises to be unenforceable promises and not part of any contracts.
The goals that workers are required to reach in order to receive bonuses are commonly decided during the contract negotiation of a worker’s employment contract. For more information on the enforceability of employee bonuses, it is important to schedule a legal consultation in Florida.
Is an Employee Bonus Only Good for Future Work?
Yes, the promise of an employee bonus is only good for future work. The reasons why are as follows.
Courts will enforce contracts, including contracts for bonuses, according to the applicable Florida laws. Whether or not employee bonuses are enforced depends on whether the court determines that there was a contract between the employer and the worker.
To find that a contract is enforceable and valid, both of the parties involved had to exchange something of value. In other words, the employer will have to get something of value in return for their promise to pay a worker a bonus.
This means that a worker must promise certain results or meet a certain goal in exchange for the bonus. The benefit that the employer receives for their promise of a bonus is the worker’s promise to provide certain results.
This does not apply if the bonus is promised to the worker after they have already produced the desired results. This is due to the fact that the employee did not provide anything of value in exchange for the promise of getting a bonus, so a contract was not formed.
Employers cannot give bonuses for something the worker has already done. As noted above, when and how bonuses are provided to workers is typically figured out during employment contract negotiations.
Can an Employer Take Away a Bonus in Florida?
In Florida, when an employer promises a bonus as part of a worker’s employment contract and that worker met the requirements, an employer cannot take away the bonus. If, for example, an employee works in sales and meets their required sales goal to receive a bonus, their employer will need to pay the bonus as outlined in the contract or be held liable for breach of contract.
If this does occur, an employee may be able to file a lawsuit against their employer for the losses they sustained. It may also be for the employer to renegotiate the worker’s contract for employment and remove the bonus provision.
If the employer desired to take that action, the employee would have to decide whether or not they wished to continue their employment without being able to receive a bonus. Florida lawyers can help employees by reviewing employment contracts before they sign them, negotiate aspects of their contract, and provide advice about revisions suggested by the employer.
Can a Promised Employee Bonus Be Enforced Even if It’s Not Considered a Contract?
In certain situations, a Florida court can enforce an employer’s promise to a worker to pay them a bonus even if no contract is present. This can be done based on the legal theory of detrimental reliance.
This is not a common occurrence, however, as courts usually use this theory in cases where an injustice may occur. Florida courts recognize detrimental reliance claims but they can be difficult to prove, so it is important to reach out to a local attorney for advice on the specific requirements.
A detrimental reliance claim may be available to workers who rely on their employer’s promises to pay a bonus and suffer a loss based on that reliance. A worker will have to show the following elements to prove a detrimental reliance claim:
- The worker’s employer made them a promise
- The employee then relied on that promise and, based on it, took action
- The worker’s reliance was reasonable and foreseeable
- Because of their reliance on the promise, the worker suffered a loss
- Not enforcing the employer’s promise would result in an injustice
Suppose, for example, that a worker is promised a bonus by their employer and they plan to use the money to purchase a new home. Also, suppose that the worker confirmed their employer would provide them with that bonus and stated their reasons for confirming.
Because of their employer’s assurances, the employee moves forward with their home purchase. In this example, a contract was not likely formed, but the worker can claim detrimental reliance if they are not given their bonus, as they suffered a financial loss.
If an Employee Is Terminated, Must an Employer Still Honor a Promise To Pay an Employee Bonus?
If a Florida worker is terminated and they were promised a bonus, if they had a valid employment contract, their employer may still have to pay their bonus, depending on their specific situation. The issue in this case would be whether or not the worker had met the requirements for receiving the bonus that was in their employment contract.
If, for example, they were a salesperson who met their required sales goal before they were fired, a Florida court may order them to pay the bonus to the salesperson.
How Can a Florida Employment Lawyer Help Me?
If you have questions about your Florida contract or bonus, negotiating your employment contract, or revising your employment contract, it is important to consult with a Florida employment lawyer. This applies especially in cases where you did not receive a bonus you were supposed to get.
Your employment lawyer will be able to review your unique set of facts to determine if you had a valid and enforceable contract or if you may have a claim for detrimental reliance. Your lawyer can also explain the steps you can take to get what you were promised from your employer. If you are looking into a new job where the employer promises bonuses, you should have your attorney review your contract before signing to ensure that it is valid and enforceable under Florida law.
If you are an employer seeking to provide your workers with the ability to earn bonuses, your employment lawyer will be able to give you advice on what should be included in your employment contracts. Your attorney can also advise you how you can avoid any issues related to worker bonuses.
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You will be matched with licensed and pre-screened Florida employment attorneys in your area who are ready and able to start helping you resolve your bonus.
