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California law requires all wages earned by employees to be paid, on time and in full. Bonuses are wages that must be paid when they have been earned.
Bonuses can be built into a company's budget in a discretionary fund, or they can be determined by the overall success of the company. Some bonus structures have multiple criteria including the company's financial success, the performance of your team and your individual evaluation results.
There's also no real federal law that states you have a right to a bonus. If employment is at-will, this means a company can fire you without cause or compensation. ?So unless you have a written contract, there's no guarantee that you're going to get anything.
Employment Contract: If you have an employment contract that explicitly states that you are to receive periodic raises and your employer has failed to honor that contract, you may have a case for breach of contract.
In case of violation of the provisions under the Act or rules, then the penalty is imprisonment for six months or may impose a fine of Rs. 1000 or both. In case of failure to comply with the directions or requisitions made, then the penalty is imprisonment for six months or may impose a fine of Rs. 1000 or both.
Failing to pay an employee a bonus covered in their contract would be a breach of their contract. If your employer is withholding your bonus and the bonus is covered in your employment contract, you might be able to sue them on the grounds of breach of contract.
If you were supposed to be paid a bonus conditioned on performance, and you met the conditions for the bonus, you may have a basis to sue. Similarly, if the bonus was not taken into account in the overtime pay that has been paid to you, you may also have a basis to sue.
Workers in many industries depend on bonuses in addition to whatever wage or salary they make. While an employer is not required to offer them, once an employer promises one or has an existing bonus program, they may become obligated to pay employees who qualify for the bonus.