Breaking Employment Contract

[jcwbu08]

What is the name of your state (only U.S. law)? - Colorado

I'm currently under an employment contract which goes through August 2014. The contract stipulates that, should I resign before the end of the contract, I am liable for $1000 in damages, paid within 10 days of request. I began working for this company in Feb. of this year, and it's been a frustrating experience. Some issues:

--Not paid until after three months working for the company (the contract stipulates I'll be paid the 15th of every month);
--Sensitive information (addresses, SS numbers, contact info., etc.,) of all employees was accidentally sent out in an Excel file, via email, to the employee mailing list (this was done by the owner);
--Uncomfortable working environment, including being around employees who openly discuss drug and alcohol use (and are under the influence when having said discussions)

Would I have legal ground to quit early and not be subject to the mandatory $1000 fee? Any advice is greatly appreciated...

 

[sandyclaus]

What is the name of your state (only U.S. law)? - Colorado

I'm currently under an employment contract which goes through August 2014. The contract stipulates that, should I resign before the end of the contract, I am liable for $1000 in damages, paid within 10 days of request. I began working for this company in Feb. of this year, and it's been a frustrating experience. Some issues:

--Not paid until after three months working for the company (the contract stipulates I'll be paid the 15th of every month);
--Sensitive information (addresses, SS numbers, contact info., etc.,) of all employees was accidentally sent out in an Excel file, via email, to the employee mailing list (this was done by the owner);
--Uncomfortable working environment, including being around employees who openly discuss drug and alcohol use (and are under the influence when having said discussions)

Would I have legal ground to quit early and not be subject to the mandatory $1000 fee? Any advice is greatly appreciated...

Without seeing the actual terms of said contract, there is no way to know. One might think that if the employer breached the contract first, there may be good reason to get out of it without penalty. The first two items on your checklist *MIGHT* qualify as a breach, whereas the last probably wouldn't, IMHO.

Have you taken your contract to an employment attorney to review it? That might be a good next step for you.

 

[OHRoadwarrior]

OP's problem is the contract was breached and they accepted the breach through the period the breach was repaired. It no longer remains as a legal reason to break the contract.

 

[swalsh411]

I'm always skeptical of any employment "contract". Many States specifically prohibit forfeiture of wages as a condition of employment but I'm not sure about CO.

 

[jcwbu08]

More info

One thing I forgot to mention...

I never initialed/signed the section of the contract or page which indicates the duration of the contract or the fee to quit early. I only signed the last page of the document. Don't know if this matters or not...

 

[swalsh411]

You can either take the document to an attorney for review and an opinion. Depending on the length it may not cost that much. Or you can quit and take your chances. If this new job is so much better it may be worth the risk. They cannot legally take it out of your pay check. They would have to sue you and get a judgement. If they take it out of your pay file a complaint with the CDLE or sue them in small claims court.

http://www.colorado.gov/cs/Satellite/CDLE-LaborLaws/CDLE/1248095305391