Quezare v. Byrider Finance, Inc.
941 N.E.2d 510
| Ind. Ct. App. | 2011Background
- Quezare was a Byrider Finance collections representative (Feb 2007–Oct 2007) paid hourly plus overtime and bonuses; bonuses were based on weekly and monthly performance criteria under two pay plans; some bonuses were based on team delinquency metrics, others on individual delinquency percentages; bonuses were discretionary and Byrider reserved the right to modify/terminate the plan; many bonuses were not paid within ten business days of month-end; Quezare was terminated Oct 29, 2007 and did not receive October bonus; he filed a proposed class action alleging violations of the Wage Payment Statute and Wage Claims Act.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are team-based bonuses wages under the Wage Payment Statute? | Quezare argues team bonuses are wages. | Byrider argues they are not wages. | Team bonuses are not wages. |
| Are individual delinquency-based bonuses wages under the Wage Payment Statute? | Quezare asserts individual bonuses are wages. | Byrider contends they are not wages. | Individual delinquency-based bonuses are not wages. |
| Does discretionary, non-binding bonus planning render bonuses non-wages? | Quezare contends plan lacks fixed regularity. | Byrider emphasizes discretionary nature. | Discretionary bonuses are not wages. |
Key Cases Cited
- Tobin v. Ruman, 819 N.E.2d 78 (Ind. Ct. App. 2004) (bonus must relate to time worked, paid regularly, not tied to employer’s profits to be wage)
- Gurnik v. Lee, 587 N.E.2d 706 (Ind. Ct. App. 1992) (minimum guaranteed bonus linked to time worked can be wage)
- Gress v. Fabcon, Inc., 826 N.E.2d 1 (Ind. Ct. App. 2005) (test for wages focuses on substance, not label)
- Wank v. St. Francis Coll., 740 N.E.2d 908 (Ind. Ct. App. 2000) (severance pay discretionary, not wage)
- Pyle v. Nat'l Wine & Spirits, 637 N.E.2d 1298 (Ind. Ct. App. 1994) (discretionary bonuses not wages)
- McCausland v. Walter USA, Inc., 918 N.E.2d 420 (Ind. Ct. App. 2009) (team-based sales bonus not wage)
