B
BigartK
Guest
What is the name of your state? New Jersey
I began a manufacturing business in 1974 and it grew to a multi-million dollar corporation with 45 employees. In 1998, I accepted an offer of acquisition from a larger, Indiana-based company. Negotiations for the sale were conducted over an approximate 2-year period, directly with the CEO of the Indiana company. I had an employment contract, after the acquisition that offered me employment for 3 years at an agreed upon salary. I was to function as General Manager of my former company, reporting to the CEO of the Indiana company.
My contract made me a "for cause" employee, specifying the terms under which I could be terminated, such as drunkenness, absenteeism, insubordination, commission of a felony, etc.
Immediately upon taking possession of my company, the CEO began having private meetings with my subordinates, with me excluded. He also began issuing memos to them directly, without copies to me, and in some cases, directed them to perform certain specific projects without my knowledge or concurrence. He made many policy changes, changed quality control procedures, instituted training programs, etc. - all without my knowledge. He also directed that my subordinates write monthly reports regarding the status of their own departments directly to him. Copies to me were not required, although in some cases, my subordinates sent me copies. Other actions, such as locking me out of my office for an hour so that he could use the phone, occurred which basically excluded and demeaned me and essentially deprived me of the opportunity to function as the General Manager.
It is my belief that he may have been doing this to cause me to resign my position. The reason for this, in my opinion, is because my 3-year employment contract specifically said that if I resign, the company's obligation to pay me any salary would end. However, it also said that if I am terminated the company would be obligated to pay me half of my salary for the balance of the 3-year contract.
After 8 months, when it was apparant that I would not resign, the company terminated me and paid me half my salary for the balance of the 3 years. They claimed that my division was losing substantial amounts of money every month, and that I, as General Manager, was responsible. (For each of 17 years, prior to the acquisition, my company earned a profit.) It is my contention that, had I been given an opportunity to continuing being a bone fide General Manager, we would have continued to be profitable.
Questions: Are the actions of the CEO of the acquiring company in violation of any law? Do you feel that I have a substantial case if I instituted a law suit against the acquiring company, suing them for the half of my salary that I was deprived of? If yes, should I include in a suit a request for punitive damages? Has the acquiring company, by their actions, violated any federal or state labor laws?
I began a manufacturing business in 1974 and it grew to a multi-million dollar corporation with 45 employees. In 1998, I accepted an offer of acquisition from a larger, Indiana-based company. Negotiations for the sale were conducted over an approximate 2-year period, directly with the CEO of the Indiana company. I had an employment contract, after the acquisition that offered me employment for 3 years at an agreed upon salary. I was to function as General Manager of my former company, reporting to the CEO of the Indiana company.
My contract made me a "for cause" employee, specifying the terms under which I could be terminated, such as drunkenness, absenteeism, insubordination, commission of a felony, etc.
Immediately upon taking possession of my company, the CEO began having private meetings with my subordinates, with me excluded. He also began issuing memos to them directly, without copies to me, and in some cases, directed them to perform certain specific projects without my knowledge or concurrence. He made many policy changes, changed quality control procedures, instituted training programs, etc. - all without my knowledge. He also directed that my subordinates write monthly reports regarding the status of their own departments directly to him. Copies to me were not required, although in some cases, my subordinates sent me copies. Other actions, such as locking me out of my office for an hour so that he could use the phone, occurred which basically excluded and demeaned me and essentially deprived me of the opportunity to function as the General Manager.
It is my belief that he may have been doing this to cause me to resign my position. The reason for this, in my opinion, is because my 3-year employment contract specifically said that if I resign, the company's obligation to pay me any salary would end. However, it also said that if I am terminated the company would be obligated to pay me half of my salary for the balance of the 3-year contract.
After 8 months, when it was apparant that I would not resign, the company terminated me and paid me half my salary for the balance of the 3 years. They claimed that my division was losing substantial amounts of money every month, and that I, as General Manager, was responsible. (For each of 17 years, prior to the acquisition, my company earned a profit.) It is my contention that, had I been given an opportunity to continuing being a bone fide General Manager, we would have continued to be profitable.
Questions: Are the actions of the CEO of the acquiring company in violation of any law? Do you feel that I have a substantial case if I instituted a law suit against the acquiring company, suing them for the half of my salary that I was deprived of? If yes, should I include in a suit a request for punitive damages? Has the acquiring company, by their actions, violated any federal or state labor laws?