Legal Question in Employment Law in California
I was contracted by a CA business for a 90-day term (in writing via email). They gave me the title of VP of Marketing, and I was to have transitioned to W-2 status after the initial 90-day contract term. If it matters, I worked out of their office every day and managed several W-2 employees.
The company terminated the agreement after 8 weeks (there was no specific termination language in the e-mail contract) because, according to the CEO, our personalities were too similar and he didn't fee we could co-exist. To that pot I had performed all functions of the position satisfactorily and had not received any sort of warning regarding my performance (or personality).
I declined other opportunities based upon the contract., so I am curious if I can sue in Small Claims Court to be paid for the remainder of the term? And if so, would I have a reasonable change of success?
3 Answers from Attorneys
It is always impossible to predict the outcome of a case, in fact there are ethics rules that prohibit going as far as guarantying an outcome. Just based on a brief summary from an interested party, any prediction is even less reliable. With those caveats, however, if the contract says you get a full 90 days, then yes you can sue for the balance of the income you would have been paid to the end of the term. Depending on the details you may have a labor commission claim as well, since it sounds like you were an employee under contract, not an independent contractor. A contract does not automatically make a worker a contractor, not by a long shot.
The "contract" will need to be read and analyzed by an employment law attorney.
Any legal opinion would have to be based on the exact wording of the contract. It is rare for any contract to guarantee employment for a specified time period but if you were fortunate to have received such a guarantee, you may have a legitimate claim. Otherwise, there is a presumption that the employer may terminate the employment relationship at its will.
The larger issue, not addressed, is whether you were misclassfied as an independent contractor during the initial period. It sounds as though you were really an employee, in the eyes of the law, which requires employers to deduct state, federal and social security taxes, as well as pay into the unemployment reserve account. It is not clear whether any labor laws may have been violated other than the penalties for making such a misclassification which are imposed by the state Labor Commissioner.
Your best course of action is to have an attorney review the facts to see if you have a binding contract of employment which the employer may have breached.