Legal Question in Employment Law in California

After finishing a contract making $110/hr, I accepted a permanent job with a start up, making substantially less money on salary, and moving across the country. Though the specifics of my bonus structure where never in my written contract, I never made what they estimated that I would make (though increasing efficiency dramatically). Now after being laid off, I see that of the half dozen (non-entry level) employees they have hired in the last 4 years, they have all been laid off after less than two years. It seems to me that they are hiring consulting professionals, promising them a career but using them for a year or so (like consultants), then firing them. I don't want to fight the lay off, I am sure they have their ducks in a row and are prepared for that. But, think they are liable for my consulting rates, since obviously they intended to use me (and others) as consultants not employees. The difference in what they paid me in that time would amount to about $200,000. Also, a couple years ago, they got in trouble for paying employees as 1099, looks like this is a pattern and they are only changing the paperwork. Is this something a lawyer might take on spec instead of hourly? How should I go about starting a suit?


Asked on 9/30/10, 3:20 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

On 'spec'? Start a suit? No to both.

Promises of possible promotion, raises, and bonuses are merely incentives to get employees to work hard, not enforceable contracts. Protections? The employer is entitled to set and change hours, duties, titles, compensation, benefits, leaves, vacations, holidays, policies, rules, etc. just not retroactively. Employees have the 'right' to pay and employee benefits per the CA wage and hour laws, formal company policy, or written contract as agreed. That's about it. There are no rules against 'unfair treatment' or poor management. In general, unless an employee is civil service, in a union, or has a written employment contract, they are an 'at will' employee that can be disciplined or fired any time for any reason, with or without �cause�, explanation or notice. The employee's goal should be to keep the employer happy. Any claim of 'fraud in the inducement' to get you to leave stable employment and take their job all dissipated within 6 months, at most, of your hire date.

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Answered on 10/05/10, 3:59 pm


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