Worker's Rights · Video Insight

Can Your Boss Take Away Your Bonus?

Holiday bonuses are usually not guaranteed. Whether yours can be cut comes down to a single distinction: discretionary, or not.

What to expect

  • Why "we always do this" is not a promise
  • Discretionary versus non-discretionary
  • When a cut bonus becomes a claim

Think you are getting a holiday bonus? Watch this before you celebrate.

Employment attorney Mila Arutunian explains when a California employer can legally reduce, delay or withhold a bonus, and the one distinction that changes the answer.

Video insight

This content is for general educational purposes only and is not legal advice. Court procedures, timelines and circumstances vary by case and jurisdiction.

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Think you're getting a holiday bonus? Watch this before you celebrate. Holiday bonuses are usually not guaranteed. Employers love to hype it up as tradition, appreciation, "we always do this." But unless the bonus is actually written in your offer letter, your contract, the handbook or an official policy, they can legally reduce it, delay it, or decide not to give it at all. And here's the big issue: whether it's discretionary versus non-discretionary. If it depends on performance, hours, metrics, deadlines — that's not discretionary. So your employer must follow their own rules and fairly pay what you're entitled to. But if it's fully discretionary, they have the green light to do whatever they want. If your discretionary bonus is not paid or cut because of discrimination, you may have a claim, and I can tell you exactly what to look for. If you have questions about this, give me a call to discuss.

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Think you're getting a holiday bonus? Watch this before you celebrate. Holiday bonuses are usually not guaranteed. Employers love to hype it up as tradition, a...

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