contractual fraud/misuse of funds?

[eartist]

I am in Los Angeles, CA. Not sure if I am supposed to give company names, but I guess if we aren't, they will be removed.

Upon notification of the recent merger with MRM Worldwide, employees at Zentropy's Los Angeles location were given written promise of a confidence bonus to be awarded end of Q1 2002. Additionally, another written promise of a year end performance bonues was delivered to Zentropy employees at the end of 2001 to be delivered by the end of Q1 2002 as well. Last Thursday, Zentropy Employees at their Los Angeles location were gathered and informed that such bonuses would not be arriving on time, and are in doubt of ever being delivered. We actually exceeded the numbers to make the performance bonus. So basically, because other companies within the same holding group didn't make their numbers, they took the money that had been set aside for our bonuses, and kept it to make a forcast that would make the shareholders happy. Funny how the people that made the call to retract our bonuses are also major shareholder.

I have heard that in CA, there are laws against this, and it could be a case of contractual fraud/misuse of funds. The amounts promised to the employess here was quite substantial. Any help is greatly appreciated.

thanks

 

[cbg]

California law tends to be a little different than that in most states, so you might be well advised to check with the California DOL, Wage and Hour division. However, in most states, the legality of this move would depend upon whether or not the written promise met the definition of a contract, or whether it spelled out what the company intended to do providing business conditions permitted it. YOu might want to have a local attorney look over the paperwork you were given.

 

[eartist]

Can you tell me the easiest way to locate similar cases in the state of CA? Or do you know of any off the top of your head?

thanks

 

[cbg]

Not a clue, sorry. You might try a website called www.findlaw.com - that's about the only suggestion I can offer.