Am I Obligated to Pay a Pro Rata Bonus to Employees No Longer With The Company?


As the end of the year rolls around, we inevitably are asked questions related to the payment of bonuses, particularly for those employees who are terminated before annual bonuses are paid out. Of particular interest is whether an employee who has been terminated – voluntarily or involuntarily – is entitled to a pro rata share of the bonus as of the date of termination. The payment of bonuses is generally governed by applicable state law.

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