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| *Ostroff, Fair and Company>>>Financial Services |
Employer didn't keep their end of the deal- should I sue? |
When I was hired for my current position, I was told that I would receive a percentage of the revenue i generated for the firm- 15%. In 2006 I had a very good year but at bonus time my employer explained that the division had a bad year, and instead paid me only 5%. The dollar difference was 7 figures. I considered suing them for the difference, but I thought that it would be too much of a disruption in my life. Plus, i didn't have a committment in writing- only verbal. Has anyone ever sued their employer? any advice? Without something in writing it would be very difficult to collect on a lawsuit; unless, you can prove it is an industry standard or such. You'll need someone who witnessed the conversation to vouch for you. Otherwise moving forward, ask your employer to give you their commitment in writting. First, I need to clarify. 7 figures is 1 million plus. Did you mean that, or did you mean 70k? In either case, it's a decent enough amount to want to fight for it. Here are some considerations: 1. Are you willing to walk away from this employer? (I'm not saying you have to, I'm saying are you willing to in order to take care of yourself fiancially?)? Though employer's are not supposed to retaliate, human nature is that your relationship will be soured, and you may not be able to continue your employment. 2. Where did you each get your numbers from? You mentioned that YOU had a good year. Your employer said the DIVISION had a bad year. It may be that there's a misunderstanding on the factors upon which your bonus will be calculated. 3. A handshake is still an agreement in this country. The hard part, as others have mentioned, is going to be proving it. But just because you are the only one that heard it doesn't mean that it isn't valid. There may be more evidence than you realize. (Past sales people's compensation, emails where you report your sales and the commission due and they confirm the receipt of the email without contradicting your numbers. 4. Consult an attorney before making a decision. At worst, you may have to pay an hours fee to get their opinion on whether you've got enough to go forward. Be sure the attorney specializes in personnel or HR law. Most importantly, take care of you. Walking away can be as noble as fighting depending up one what you need to accomplish. What takes the best care of you? Peace of mind where you are? Will you be able to work your hardest and trust this employer after this behavior? Can you afford to walk away from that much money? I wish you all the best, regardless of your choice. Sue the bastard. I sued my former employer and everyone including the attorney I retained stated my case was picking at straws since most of the accusations were verbal with no witnesses. Guess who won? Me. I would consider a lawsuit but would consult an attorney first. Ahhhhh, 7 figures = $1 million +. Well worth pursuing I think, at least worth speaking to a lawyer about the merits of your case. Performance bonuses are based upon different things in different companies and it looks like you were employed in a losing division. You sound like you didn't fully understand how the compensation program worked and now you're left with sour grapes. Sueing over a verbal agreement is a losing battle. |
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