Legal Question in Business Law in California

Re: Breach of Contract - Damages?

The only claim will be for your unpaid income, not emotional distress or other damages. If you should have been an employeee, there is a form you can file with the IRS that you might want to consider.

JOEL SELIK

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Re: Breach of Contract - Damages?

How much are the commissions? Sounds like you might have a case. You may contact me.

Re: Breach of Contract - Damages?

If you should have been an employee, you might consider contacting the California Employment Development Department to file a claim.

Re: Breach of Contract - Damages?

Sounds like you may have been an employee; you might consider contacting the California Employment Development Department to file a claim.

Re: Breach of Contract - Damages?

I think there is an argument that you were an employee during the post-termination period, in part because the company took no steps to change your status to "independent contractor" and in part just because your working relationship resembled that of a commissioned employee-salesperson. Call the Labor Standards Enforcement section of the (California) Industrial Relations Dept. As I recall, you can get prompt action on a complaint; they will contact the employer and demand an explanation, and that may get you paid without legal expense.

If Labor Standards takes the position that you weren't an employee, you'll probably have to sue. If what you're due doesn't greatly exceed $5,000, you should consider Small Claims Court.

Keep in mind that there is a one-year statute of limitations for oral agreements. Your e-mail exchanges may be sufficient to show a written contract, but don't count on it. Also, presenting a statement or bill that isn't contested may extend your claim under the principle of "account stated."

I think the core claims of your suit should be breach of contract and account stated. It should probably also include a fraud allegation, on the ground that the boss promised you a written contract to induce you to work, but had no real intention to offer you one.

You should also (if you haven't already) print out and preserve your evidence, and prepare and present an itemized bill for your commissions.

Re: Breach of Contract - Damages?

A written contract in this instance is not a condition for you to receive compensation. An oral contract is all that is necessary. Here, the employer requested that you work and the employer at all times knew you were working for compensation. The employer would be "estopped" (prevented) from denying you compensation. If the basis for compensation (i.e. how commission was to be determined) was not agreed upon, the industry standard can be used. Statutory penalties are also available. Our office has several wage/hour and commission collection cases of this type. We would be happy to help you.