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Employee may still be entitled to bonus after watching pornography at work

June 2021 employment law letter
Authors: 
Jourdan Day, Porter Wright Morris & Arthur, LLP

After being terminated for watching pornography on his work computer during work hours, the former employee sued for breach of contract, and the employer countered by asking the court for summary judgment. The case couldn't be dismissed without a trial, however, because there is a possibility the company fired him to avoid paying a retention bonus, the U.S. District Court for the Southern District of Ohio recently ruled.

Background

George Dix worked for Anthelio Healthcare Solutions, an IT services company. In 2016, Atos IT Solutions and Services acquired Anthelio. As part of the acquisition, Atos agreed to continue employing Dix and offered him a retention agreement.

The agreement stipulated Atos would pay Dix a $100,000 retention bonus on June 30, 2017. To be eligible for the bonus, he was required to be employed with the company on the payment date. He signed the agreement on September 20, 2016.

The retention agreement clarified Dix would forfeit the bonus if he was terminated “for cause” or “voluntarily resigned” his employment with Atos. It defined “cause” as:

  • Neglect or refusal to perform his job duties;
  • Failure to follow policies and procedures or correct within five days of notice of the failure; and
  • Conviction of a crime of moral turpitude, theft, fraud, embezzlement, or violence.

In November 2016, another Atos employee who was performing maintenance on Dix’s computer found explicit messages and content on the device. The employee reported the matter to her superiors, who then informed HR about the situation.

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