Under pay for performance rolled out end of year 2024, 5% of workforce will lose raises, RSU grants and bonus is reduced to 25%. Managers are being asked to retroactively create artifacts to justify the rating in Feb 2025 before rewards letters are given.
Rather than layoffs, perhaps the 2025 strategy is to win on both sides, not pay earned wages of total compensation and avoid cost of severance packages hoping employees will just quit out of frustration.
If you are a causality of this please check your state and federal regulations. There is a claim process to report violations. Also raise this with Ethics Business Office at PayPal. Check the bridge for email address to report ethics violations of state or federal laws
In California for example and generally under US employment law including FLSA, an employer cannot withhold a non-discretionary bonus or total compensation outlined in offer letter without a valid reason, especially if the employee has met the performance criteria outlined for earning the bonus. Given the timing of the new policy this might be problematic since:
- There was no documentation of performance issues and the steps taken to address them in 2024. Any documentation was created retroactively in Feb 2025. This includes performance reviews, warnings, and records of any disciplinary actions.
- There were no 2024 audits regular audits of performance evaluation processes and termination decisions to ensure compliance with policies and to identify any patterns of potential bias.