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I've been railroaded!!

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mcgradya

Guest
Live in Florida, work for a manufacturing plant on the coast.

Three weeks prior to the disbursment of annual bonuses (Sept 2001) my vehicle was rear ended leaving me without transportation. The CFO stated that I was scheduled to receive 4800.00 for a bonus and wrote me a check for 4000.00 stating that the 4000.00 would be deducted from my bonus check and that I might owe a couple of dollars for taxes. I took the money and purchased a new vehicle and continued on. When the bonus checks came out (Oct, 2001) mine was 18??.?? netting somewhere around 1300.00. I called the CFO to thank him for the great bonus thinking that my bonus was for 5800.00 (Bonus criteria was up to 10% of salary based on company financial standing). It was at that point that I was informed that the 18??.?? was my bonus and that I owed the company 4000.00 dollars now. The president apparently went through and hacked all the bonuses by 75%? or so. At no time was there any discussion of a "loan" only that I was being advanced a portion of my bonus early. No contracts were signed, no loan paper work filed or anything. Now starting on 4/10/2002 the company started taking 40.83 a week out of my check and now on 4/24/2002 I am being forced to sign a document that states the following:
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FOR VALUE RECEIVED, the undersigned promises to pay to the order of (The Company and its address), the sum of 4000.00, plus interest at a rate of six percent (6.00)% per annum on the unpaid balance until paid. The said principle shall be payable in weekly installments of $40.83, each week starting April 10, and continuing each week thereafter until said principle is fully paid.

IF default be made in the payment of any installment under this note, and if such default continues for a space of thirty (30) days, then and in that event the entire principal hereof shall be at once become due and payable without notice, at the option of the holder or holders of this note. Failure to exercise the same in the event of a subsequent default. In the event of default in the payent of this note for any amount due under the terms hereof, and if the same is collected by attorney at law, then the undersigned agrees to pay all costs of collection, includeing a reasonable attorney's fee. Presentment, protest, notice of dishonor and notice of protest are waived by each every endorser.

Sign___________________________________
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I already protest that the advance has been turned into a loan
and this document says nothing about them not being able to fire me until this is paid in full. I've worked here for 2 years and feel
as though I'm not in line to be dismissed but this doesn't excuse how I came to be "Entrapped". Any ideas?
 


Beth3

Senior Member
Does the language in the company's bonus policy state something to the effect that the company has the right to cancel, amend, change, etc. the bonus program at any time? If so, it appears that basically the company did indeed basically loan you $4,000.

Looks like the CFO was being a nice guy to advance you an estimated bonus but did so prematurely before the CEO approved the annual bonus payments. Wherever I've worked, bonuses always had to be approved by the CEO before they were a done deal.

I think it's kind of a lousy deal that they're charging you interest under the circumstances though.
 
M

mcgradya

Guest
Bonus documentation..

The CFO doesn't put anything in writing for his people. Its all
word of mouth, too much accountability. I almost didn't start working here because they didn't send out my hire paperwork then they lied about it being sent, 2 years later I still don't have it and they won't recreate it for me.

I agree it was nice of the CFO to give me the money early so I could continue to work for work him. I feel as though since it was a bonus issue that the repayment should have come from future bonuses at the very least. Again, there was no dialog about giving me "a loan" I led to believe the money was already mine that the checks just hadn' been cut yet.

Thanks
 

Beth3

Senior Member
I understand what you're saying. You had every reason to believe the company would be providing you with a bonus. And apparently the CFO acted on the same assumption. Unfortunately, the CFO jumped the gun and the CEO had not yet approved anything.

No matter what you call it, the CFO gave you monies you were not going to be receiving and that he did not have the authority to release, although he mistakenly thought he did. You rec'd 4K they didn't intend you to have and you need to repay it. If you refuse, I expect you can anticpate being out of a job.

All you can do is go back to them and discuss different payment options that you find more palatable. They're under no obligation to accept your terms however.
 

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