I finally left Fiserv (thank god) and recently just got hit to repay the already small bonus payout from this year. Obviously I know I signed that I would if I ever left but am curious if anyone has ever gotten out of paying it? I still can’t believe this place does this…
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The legality of these clawbacks is complicated at best (though morally reprehensible since laws requiring clawbacks are meant to apply at tje executive level, not low/mid management and individual contributer levels)
See this site: https://www.foxwilliams.com/2016/10/03/clawing-back-bonuses-when-is-it-enforceable/
Where I noticed something kind of interesting:
There are a number of issues to consider with clawback provisions. Unless they have been drafted with extreme care, an employee may have scope to argue that the provision is a penalty clause or a restraint of trade, and is therefore unlawful.
A clawback provision is likely to be an unenforceable penalty clause if it appears that the primary purpose of the clause is to disproportionately penalise the employee, rather than merely compensating the employer for the actual loss suffered by the employer in the event that an employee breaches the bonus arrangement.
Did you end up paying it? FYI.. they are asking for repayment based on your state of residence. I am in the same situation btw..
You were basically forced to sign it (or you probably would have been fired because they knew you were not planning on staying). I would contact the Department of Workforce Development in your state. This was money earned, even though given as a bonus, I don’t think they can retract it. At least you can get them to pay their lawyer fees for trying.
Not surprising. Retirement has financial snares too. When you retire you have to sign a non compete to keep any RSUs given as a bonus. The truly twisted thing is the non compete says you cannot work for competitors or NON competitors. Only non profit jobs are allowed. So, basically you cannot work till all your RSUs are vested and sold which is years. This shouldn't be legal but it is. If you don't sign the non compete, you lose all RSUs.
In California, you can claim your unvested shares as well
They make you sign something to get your bonus now? God Frank su-ks
There is a process in legal to send out letters and you will eventually have to repay.
They make you sign a document when they give the bonus. So you cannot legally challenge that. The worst part is the slyness & corporate greed that Fiserv is employing. You have earned the bonus for the previous year which Fiserv wants back if you quit in the current year. What a shady company. Are they even allowed to enforce such rules? Hope someone sues them.
I am a few months away from submitting my legal retirement. I had my attorney look at the language and if you are in a position to meet the criteria, they can't ask you to pay the bonus back. Of course, they changed the rule of 70 from 50+20 to 60+10.
Just like FB. Spend more in legal expenses to claw back a bonus.
I would take the advice of the person who told you to blow off their request. Not sure how much your bonus was but we had employees never return their laptops and not once did we pursue it. Legal would send out nasty grams but they never took them to court. Just idle threats and over time it was dropped.
That must be a Frank thing. I left and never had to pay a bonus back
You received a bonus?
My advice is ignore it. Do they really want to go to court over what to them is a small amount?