Law Firm Bonus Isn't 'Wages,' Court Says, If No Set Formula Applies
Rounding up cases of interest to attorneys decided in recent months, the Connecticut Law Tribune leads with a state supreme court ruling that a law firm wasn’t required to pay an annual bonus to a departing employee.
Although the complaining attorney argued that the bonus constituted “wages” under the applicable state statute, the Connecticut Supreme Court held that the firm wasn’t required to ante up. Because the bonus was discretionary and determined by the head of the law firm without applying a specific formula it didn’t count as wages, and hence the firm wasn’t liable for failing to pay wages to the attorney, it explained in a written opinion (PDF) issued June 8.
The case is Ziotas v. The Reardon Law Firm P.C., No. 18292.
Additional coverage:
Hartford Business Journal: “Bonus Rules Require Careful Navigation”
Updated at 6:45 p.m. to link to Hartford Business Journal article.
