O’Brien Law Firm sues a REECE USA company for former sales VP’s unpaid bonus

On November 9, 2023, the O’Brien Law Firm sued MORSCO Supply LLC dba Dallas-based REECE USA on behalf of a former employee who alleges that she is entitled to a $41,000 annual Profit Share Bonus.

Upon the close of the company’s fiscal year at the end of September 2023, the company provided the former sales VP with a compensation report. That report awarded her a $41,000 Profit Share Bonus for FY2023, stating that it “will be paid on October 27, 2023.” The VP subsequently resigned her employment effective October 13, 2023 to move on to another opportunity. The company then refused to pay her bonus, stating that they don’t pay a bonus to an employee not employed at the time of payment.

However, as alleged by the lawsuit, the company never provided the VP with notice of this supposed condition, and she didn’t know about it. Therefore, under Texas law, the company can’t retroactively withhold her earned bonus on that basis. Furthermore, she relied on the guarantee that she “will be paid” the bonus on a certain date when she chose her resignation date. Therefore, if the court finds that MORSCO Supply LLC has breached its contract with the VP, she would be owed her full bonus as well as the firm’s attorney fees and court costs.

The company denies the allegations. The case is taking place in Dallas County Court-at-Law No. 4.

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