I have filed a complaint with speakup@paypal.com - despite having steller performance reviews for last 9 years and average IBP of ~105% annually, I was casualty of the new pay for performance mandate to rate 5% as needs improvement. I was not given a performance review until a week after rewards letter discussion. In the annual review I was told I met all 2024 performance criteria and my rating was due to quota mandate and I believe the fact I shared in Q4 I would be leaving PayPal in 2025 after not receiving promotion for 5 years. I am giving global compliance a few weeks to investigate and then I will hire an attorney and file a claim with California labor Commissioner's Office for a settlement. Both Bonus and package. The Burdon of proof in civil case is more likely than not. Given the directives from HR to people managers to create performance documents post-factum in February, lack of any performance feedback during the year and the mandate to select 5% for needs improvement, this does not meet the legal standard of a valid reason to withhold earned wages promised as Total Compensation. I am interviewing attorneys next week to guide me through the claim, settlement conference and hearing if needed. Before you quit PayPal, google withholding Bonus and understand your rights. Also report any misconduct or unlawful behavior to speakup@paypal.com. Under the whistleblower policy and FLSA, you cannot be terminated for reporting a violation of law. That would increase damages with wrongful termination case.
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Whom should we reach out to at the California Labor Commissioner’s Office?
Just checking in regarding any developments on this. Also, any response from the California Labor Commissioner’s office?
I got an amazing bonus. They said they gave me yours.
It is more than just a business case or ROI calculation for the employee’s time spent on this. It’s what they stand for - that employers can’t do this and get away with it every single time. Remember, irrespective of which level you are at - you are still an employee. And can be on the receiving end of this. If we can’t stand up and fight this one’s case alongside them - let us atleast support silently.
PS - people manager myself and I heard the 5% number in more than 1 call
Yea this is probably a poor use of time unless you have affirmative evidence (someone said something they shouldn’t).
Even then, you’d be going for a settlement that is 20% more than severance
I will be talking with lawyer next week and just reached out to California Labor Commissioner (DLSE2@dir.ca.gov) to discuss opening my claim. Here is premise for my complaint below. I am confident through emails, system records, witness testimony and HR data analytics I can prove earned wages were withheld to meet a quota versus actual performance issues. I suspect this was by design to drive attrition in Q1 and avoid severance packages paid in previous years. Also avoid paying out Annual RSUs vesting in March.
In California, if an employer withholds a bonus without documenting specific performance issues used as the reason, this could be considered illegal, as earned bonuses are considered wages and employers cannot withhold them without a clear justification, especially if the bonus is not explicitly stated as "discretionary" in the employment contract; an employee may be able to file a wage claim with the Labor Commissioner's Office to recover the unpaid bonus.
Key points to remember:
• Non-discretionary bonuses are considered wages: If the bonus is not explicitly stated as discretionary, it is considered earned wages and must be paid unless there are documented performance issues that clearly justify withholding it.
• Documentation is crucial: To legally withhold a bonus based on performance, employers must have clear and documented evidence of the employee's poor performance, including specific examples and dates.
• Employee action if bonus is withheld: If an employer withholds a bonus without providing proper documentation, the employee can file a wage claim with the California Labor Commissioner's Office to investigate the situation and potentially recover the unpaid bonus.
What to do if you face this situation:
• Review your employment contract: Check if your contract specifies whether the bonus is discretionary or performance-based and what criteria must be met to receive it.
• Request a meeting with HR: Ask for a detailed explanation of why your bonus was withheld and request to see any documentation supporting the performance issues cited.
• Consult an employment attorney: If you believe your employer is unfairly withholding your bonus without proper justification, seek legal advice to understand your rights and potential options for recovering the unpaid amount.
I was chosen to receive for my bosses quota, since I was planning to leave in 2025. yes, I have the receipts, emails, workday documentation, and every leader who was forced to select someone as witnesses.
That's the thing, as a people manager I was told it was a mandate, in writing and during my performance review when I received my rating so yes, I can prove this as can all my managers who were also told it was a mandate by HRBP - I was told I met all performance objectives for 2024
can you prove the “rating was due to quota mandate” was said to you or the 5%
You shouldn’t even know about that
What level are you at
Search for email on 10-25-2024 subject "Important Promotion and Performance Ratings Updates" - Refer to manager hub for policies changes and rollout in Q4 or Pay for Performance - look for guidance from your HRBP and Leadership on force ranking employees to satisfy the quota - finally look for direction from HR and leadership to create after the fact performance documents / action plans where there was no evidence of performance issues documented during 2024 or in mid year reviews. Our HRBP and Leaders were transparent, everyone must select someone from every team to fill the quota whether there was a needs improvement discussion or not. Some leaders complied, others did not like me and my team. We also captured fact the employee had no areas for improvement in Workday rewards tool and asked for exception which was denied. Say it again, bonus is part of earned wages expected by an employee unless they do not meet performance goals or have other areas identified such as leadership principles, code of conduct, etc..
Do you have copies of HR directive that ask for 5% to be in the needs improvement category? Happy to help you fight your battles.
Most people just quit when angry but stay until your stocks vest in March, contact your regulatory agencies and play the longer game of working, at least appearing to work while you try to recover Bonus. I feel Salary and RSU grants dont matter because who would want to stay at a company that allows wage theft. File a complaint with PayPal ethics, contact governing agencies, make this painful for them. They expect you to just quit, avoid paying packages, dont give them that and make it as emotionally uncomfortable for them as you can. If they fire you for filling complaint for their breaking the law, you have wrongful termination case on top of this. Already know they sc--wed you. Google lawyers for wrongful termination. Reporting violations of law including wage theft is protected. I decided not to leave quietly, want to be made whole for bonus and a packaged given tenure, past performance and my treatment and the breach of trust.
Right yeah that’ll do it
Finally someone is speaking up!!!!!! Thank you!!!! Europe has similar laws in all countries. Again, they are doing this to make people leave. Speak to your local employment authorities!!! You have rights and PayPal is going against so many employment laws!!!!!!
FYI - While I am covered under California Labor Code and FLSA (Federal), there is a similar Payment of Bonus Act, 1965 that mandates that employers in India must pay a minimum bonus to their employees based on a percentage of their wages, with the primary goal of sharing profits and promoting industrial peace. Might be worth checking you regulations for for your country