Am I laid off or not?

What is the name of your state? TX

I left a Fortune 50 firm and a very good paying job to join a start up 3 years ago. Most of my work will allow the organization to make lots of money in the future. As a senior engineer of the firm, I was given a large stock options and annual bonus plan. But due to the slow down in the economy, I have never been paid any bonuses. Last year we were verbally told that every one will take 30% pay cut but as soon as the money is available, we will be paid back.

For last 3 months, we have been working without pay. Hoping that some business will come in soon (we are iin trials with two major customers). However, company has been paying our health insurance. Two weeks ago my boss issued me a letter stating that I am laid off with start date being 3 months ago (5/15). His explanation is that this will allow us to collect unemployment but we will continue to work and be paid back whenever the company has money. Nothing on paper states this.

Now I am not sure how to deal with this situation. If I am really laid off, I should get some vacation and severance pay. My layoff date should be after the notice and vacation time (9/15). This will mean that company will owe another year bonus. Most of my options are also expiered before 3 year (9/15) date. What should be my course of action without straining my relationship with the company? I would like to collect umemplyment but it could eliminate my claim on this year bonus, back pay from pay cut, and probably 6 months of pay. In this whole process, I have never signed any paper. Only emplymenet letter at the start reads all the terms mentioned here. There have been emails from my employer about paycut being effective starting last year. Need advise ASAP.

Thank you in advance.

p.s. forgot to mention one thing. during this process I have also filled for bankcruptcy. So I really need all may back pay and bnous money. And if company is sucessful in the future, I would like to make some money from options.

i will tell you this... forget about the options..if you do make money, and a creditor finds out they can re-open the bankruptcy and try and get at your profits.

after all you did stiff them....and you did own the "worthless" options when you filed for bankruptcy.

It sounds to me as if you've been laid off.

Although to be certain you would have to have the actual bonus agreement looked at by a local attorney, it is highly unlikely that it constitutes a binding contract. I wouldn't count on receiving the bonus for even the first year, let alone a second year. Severance is not mandated by law and in your state, neither is payout of vacation.

Finally, I sincerely doubt that you will ever see the payback on the pay cut. A pay cut is legal and it is unlikely that his verbal promise to make up the difference is binding.

The one thing that you ARE owed by law is the pay for the months you worked without it. For that you can get assistance from the state Department of Labor.

should I cut my losses and try to get a "real" layoff paperwork. I am still working but this paper that supposly was created to help me has termination date of May, 2002. At least with 9/15 (date I was given the paper), I still have a claim on back pay.

Thanks in advance