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Has a company refused to pay nondiscretionary bonuses?

On Behalf of | Mar 3, 2026 | Wage & Hour Laws

Worker wage claims may stem from a company refusing to pay overtime or violating minimum wage rules. Other times, well-compensated employees may need to take action when companies do not fulfill their wage promises as outlined in an employment contract. 

Salespeople, managers and others in well-compensated, performance-driven roles may be eligible for bonuses in certain circumstances. If a company refuses to pay a bonus as outlined in a worker’s contract or in an incentive program, the employee may have the right to pursue a wage claim against the company. 

Nondiscretionary bonuses are part of a worker’s wages

Some companies offer discretionary bonuses, which are essentially provided as a means of sharing the company’s good fortune with its workers. Workers frustrated that they didn’t receive a holiday bonus generally do not have the right to file a wage claim over the loss of a discretionary bonus. 

However, when bonuses are part of a worker’s pay structure or when the company announces a program intended to incentivize better job performance or employee retention, the bonus promised is nondiscretionary. The bonus is part of their pay

Provided that the worker meets the company’s criteria for the bonus, the organization has a legal responsibility to follow through on the promise of that extra pay. Workers may need to review emails about incentive programs or their contracts to validate that they have met the terms for receiving a bonus. Provided that workers have met the terms for a bonus and their company refuses to provide it, they may have grounds for a wage lawsuit. Working with an attorney can be beneficial for frustrated employees who did not receive bonuses as promised by their employers.

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