In the case of Brown v. Fukuvi USA Inc., 2022-Ohio-1608, the Court held that there is no duty for an employer to pay commissions and bonuses to an employee when such terms are not clearly agreed upon.
Here, the employee argued that his offer of employment included payment of commissions and bonuses as part of his compensation, and his employer made oral promises to him about payment of such commissions and bonuses. The Court disagreed with the employee.
In support of its conclusion, the Court reasoned that the employee failed to prove that he was entitled to commissions and bonuses, even though those earnings had been discussed as a likely possibility in the future. The Court concluded that the employee’s offer letter and contract did not plainly indicate a specific amount of commission or bonus and there was no common understanding between the employer and employee as to definite payments of such bonuses or commissions. Instead, the employer indicated that a determination on commissions/bonuses would be decided later. The Court further explained that there remained no agreement that commissions or bonuses would be paid even after the employee had several conversations with his employer about them, and the employee continued to work for the employer without being paid those commissions or bonuses. Thus, the employer was not obligated to pay.
To read this case, click here.
Authors: Matthew John Markling and the McGown & Markling Team.
Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always-changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.