New RTO lawsuit: Company cut bonus in half because employee worked from home
As the RTO wars continue, employers are pushing hard to get workers back into their cubicles, with some going so far as to “incentivize” office time with punitive consequences for noncompliance.
But as this RTO lawsuit shows, some employers may be going too far.
A remote employee sued her former employer, alleging the company illegally withheld a significant portion of her bonus because she worked from home rather than in the office in 2022.
WFH employee: Show me the money!
Meet Elmarie Bodes. In 2016, she started a full-time remote position in big pharma, as a senior director of business transformation at AstraZeneca. In addition to her salary, Bodes says her “agreed upon compensation” package included stock options and an annual performance bonus, dependent on her ability to meet clearly defined criteria.
Bodes said she regularly achieved the goals outlined and received performance bonuses and stock options. But in early 2023, Bodes said she received unwelcome news from the company.
Because Bodes worked from home for all of 2022 rather than coming to the office three days per week, the company said her performance bonus for 2022 would be cut in half. And she would also not receive stock options for her work in 2022, the company said.
What does the math look like? Bodes says she was “entitled to a performance bonus of $124,443.70 and stock options valuing approximately $65,000.” But instead of receiving her total earnings, Bodes said she was told “her performance bonus would be decreased by 50% to $62,221.85 and she would not receive her long-term incentive bonus.”
Bodes left the company and filed a lawsuit alleging breach of contract and violation of a South Carolina wage payment law.
RTO lawsuit alleges breach of contract, state wage law violation
Regarding the contract claim, Bodes claims the company “set out a clearly defined compensation plan” and that she performed work in exchange for this plan. She alleges the company’s failure to fully compensate her for work done in 2022 “by retroactively changing the compensation” after she completed the work amounted to a breach of contract.
As to the state law claim, Bodes alleges the performance bonus and stock options amounted to “wages” under state law. She further asserts that the company’s failure to pay her full wages earned in 2022 was a “willful” violation of state law, meaning she is entitled to damages and attorneys’ fees.
The suit seeks all wages due, damages and attorneys’ fees.
Bodes v. AstraZeneca Pharmaceuticals LP, No. 2023CP2304769 (S.C. CCP filed 9/19/23).
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