Breach of verbal contract?

[askadan]

What is the name of your state? What is the name of your state? Texas

I was laid off in November from my job along with many others due to the poor performance of the company and the market. I was told this was not a performance issue on my part but a head count issue. Knowing this was true I left with no hard feelings towards the company knowing that things would improve and the possibility of being rehired at a later date. After searching for a job for 6 months with no luck and my unemployment running out, I received a phone call from my former employer saying they would like to offer me another position in the company, but at a reduced salary, which was just fine with me. I went in for the interview which went very well. I was told there were 2 other candidates for the position but they would know something in a couple of days. Two days later I received a phone call saying I had the position and was told "you can count on it" and that they were preparing the proposal for me. My start date would be the first week in June. I was very relieved to say the least knowing I was going back to work. I have been waiting 3 weeks for the proposal and started getting a little nervous about not receiving it yet. I just assumed since I wouldn't start untill the first week in June that they were just waiting till the end of May to send it. Here it is 5 days from my agreed upon start date and I receive a phone call from a friend of mine who is still employed there. He is not a part of this rehiring process, just a friend. He informs me that they have decided not to fill the position they promised me. I have yet to receive the "official" phone call informing me of this. Can they just leave me hanging in this precarious position thinking I have a job? Financially this is going to be devastating on me! If I knew this would happen I wouldn't have wasted my time with them. I have lost 3 weeks in job searching because of their broken verbal contract and now my unemployment has run out. Is there any legal help for me?

 

[cbg]

If your friend is not a part of the rehiring process, then how does he know what they've decided? Until you hear from them, there's no reason to believe that what he told you is anything more than grist from the rumor mill. Pick up the phone and call them!

 

[Beth3]

Ditto - call them and find out first hand what's going on. Your friend may not have any idea what's really going on.

 

[I AM ALWAYS LIABLE]

My response:

If you're able to prove the employer's offer to you, you may in fact have a cause of action for "detrimental reliance." While your State is an "at will" employment State, an employer may be estopped from asserting that an employment is at will where the employer has made a promise that it should reasonably have known would cause the employee to believe a permanent employment relationship existed, and the employee has relied to his or her detriment thereon.

In employment cases, the "detriment proximately caused" consists of the various elements that make up an employee's compensation, including salary, bonus, overtime pay, sick leave, life insurance, medical and dental insurance, pension and retirement benefits, etc. There may also be noncash perquisites and benefits to consider: automobiles, dependent care, vacation facilities, country club dues, etc. The law allows recovery for detriment proximately caused or which, in the ordinary course of things, would be likely to result (from the breach of contract).

The measure of damages for breach of contract "is the amount which will compensate the party aggrieved for all the detriment proximately caused thereby, or which, in the ordinary course of things, would be likely to result therefrom."

It is fundamentally unfair for a potential employer to cause a prospective employee to keep themselves "available" for employment with the offering employer, only to have the rug pulled out from under them at the "eleventh hour." Therefore, if the job does not come to fruition through no fault of your own, I would suggest that you, at least, discuss this matter with an attorney who specializes in employment law.

IAAL