Unpaid Bonus Violations: Contract, IWPA & Unjust Enrichment

Plaintiff McCleary filed a complaint against his former employer for breach of contract, violation of Illinois Wage Payment and Collection Act (IWPCA), and unjust enrichment. McCleary v. Wells Fargo Securities, LLC, 2015 Ill. App. 141287 (March 17, 2015, opinion corrected March 23, 2015).

Defendant moved to dismiss the complaint pursuant to 735 ILCS 5/2-615, arguing that it had the full discretion to deny plaintiff a bonus and, thus, plaintiff can never seek a legal remedy for an abuse of that discretion, among other things.

The Circuit Court agreed with the Defendant and found that the language of the Plan gave the defendant the "absolute discretion to determine whether a bonus should be awarded and, if so, the amount, ultimately undermines the claim here on all counts." Thus, the Circuit Court dismissed the complaint.

However, the Appellate Court reversed, holding that the employer's discretion to award bonuses under "Group Bonus Plan" did not foreclose Plaintiff from seeking remedy based on breach of implied covenant of good faith and fair dealing for abuse of that discretion.