NYS.
Ok, situation is this.
Back on June 12th, Employee was given a promotion (VP) and a pay rise (let's say $20,000 pa).
The Company was very cash-strapped, so E agreed verbally to accept his current salary until C had more money, at which time backpay would be tendered retroactively to 6/12. Foregoing pay then being paid late was a common practice of C.
There is evidence that on July 11, a memo was placed in E's file by C's president, stating that the pay rise would be contingent on C's meeting certain sales goals. E states that this was never discussed at the time of the promotion, and that he only discovered the "benchmark" contingency yesterday, when laid-off.
Now, E claims the backpay based on breach-of-contract and specifically, detrimental reliance (he would have sought and taken another job had he not been promoted!)
I have advised him to write a more-or-less amicable letter requesting the backpay and interest computed according to IRS guidelines. It seems to me the July 11 letter is actually something of a smoking gun, as it demonstrates that the contract was unililaterally modified (of course, had E agreed to the new terms on July 11, it being an at-will state, his rights would have been far different -- but he never heard of it and certainly never agreed it).
I have further advised E that he will have to think long and hard about whether to proceed with legal action if C does not pay. Total is about $11,200 dollars-ish. There could be reflections on future background checks for employment, for one thing.
What are your thoughts about the situation and the mechanisms open to this worker?
Thank you very much for any thoughts!
AAL
Ok, situation is this.
Back on June 12th, Employee was given a promotion (VP) and a pay rise (let's say $20,000 pa).
The Company was very cash-strapped, so E agreed verbally to accept his current salary until C had more money, at which time backpay would be tendered retroactively to 6/12. Foregoing pay then being paid late was a common practice of C.
There is evidence that on July 11, a memo was placed in E's file by C's president, stating that the pay rise would be contingent on C's meeting certain sales goals. E states that this was never discussed at the time of the promotion, and that he only discovered the "benchmark" contingency yesterday, when laid-off.
Now, E claims the backpay based on breach-of-contract and specifically, detrimental reliance (he would have sought and taken another job had he not been promoted!)
I have advised him to write a more-or-less amicable letter requesting the backpay and interest computed according to IRS guidelines. It seems to me the July 11 letter is actually something of a smoking gun, as it demonstrates that the contract was unililaterally modified (of course, had E agreed to the new terms on July 11, it being an at-will state, his rights would have been far different -- but he never heard of it and certainly never agreed it).
I have further advised E that he will have to think long and hard about whether to proceed with legal action if C does not pay. Total is about $11,200 dollars-ish. There could be reflections on future background checks for employment, for one thing.
What are your thoughts about the situation and the mechanisms open to this worker?
Thank you very much for any thoughts!
AAL
