Legal Question in Employment Law in California
Breach of Written Employment Agreement
I signed an employment agreement for a term of two years at an agreed salary. The contract stated that I was an independent contractor but that I had agreed to work ''full time'' at approximately 40 hours per week. I was given a title of general manager and provided an office. All my business expenses have been reimbursed on a monthly basis. I have never been given a review of my work results nor have I ever had a quota of required sales to attain. My employer told me two weeks ago that he was going to reduce my monthly compensation by half, and that he had hired another person to take on some of my duties, and that he would be paying her the same amount by which he was going to reduce my pay. I told him this was unacceptable, and told his secretary the same thing the next day. Since that time I have not spoken with my employer other than his one telephone call to me in which he was obviously attempting to get me to resign. I have continued to work and have documented thise activity with reports to his secretary. I have not been paid since July 15, and was due for pay and expense reimbursement on August 15. My contract states that he will be in default on September 10 if I am not paid. Is this wrongful termination? Breach?
2 Answers from Attorneys
Re: Breach of Written Employment Agreement
First of all, you are almost certainly an employee, not an independent contractor, regardless of what the contract says. There are all kinds of legal consequences that the employer faces by misclassifying you. However, whether this benefits you directly must be analyzed more carefully than can be done in this forum.
Secondly, depending on the wording of the contract, the employer may be obligated to pay your salary/fee for the balance of the 2 year term. This contract must be reviewed by an attorney to better advise you of your rights and obligations. You should meet with experienced labor law counsel in your area to review your case and advise you on your options.
Re: Breach of Written Employment Agreement
Yes it sounds like breach, but you should try to convince the company not to do so to avoid being sued. Suit is your ultimate remedy. The sooner you take action, the less likely they can claim you agreed to the change. Contact me if interested in having counsel help you.
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