Legal Question in Employment Law in California

I live and work in CA for a WA based international software startup with a valuation approaching 1B. The company sells exclusively to the public sector. The company considers me an IC and has promised me FTE conversion and benefits multiple times but hasn't delivered. I work amongst a uniform team of FTEs as a senior level solutions consultant tasked with connecting the company with high profile executive and elected buyers, as well as providing public sector strategic insight to complex sales deals.

Recently, I was let go with no notice despite three months remaining on a seven month contract.

I want my employer to respect the terms of our contract and I want the back pay and benefits I'd have earned if I wasn't miss classified as an IC -- or if my employer had simply followed through on any of the three written job offers they've given me.

Background -- Two years ago, I was approached by said startup and asked to interview for a job.

After three months of interviews, I was offered a position on a 90 day consulting contract with a stated promise to roll me into an FTE at the end of 90 days. My initial work related to co-managing a special sales team formed to open new verticals and markets. My coworkers and the other manager all had FTE status and I was treated the same.

Despite my supposed IC status, I attended new hire orientation and weekly staff meetings alongside my teammates. The effort was a success. After 90 days, I was in fact told by a company VP that I'd earned FTE status and all that remained was discussing title and compensation. I spent six weeks exchanging job descriptions with my supervisors. Eventually it became clear they were stalling. In the end, they acted as if nothing had happened and told me I needed to continue to prove my value in my position to earn FTE status and benefits. They gave me specific goals to complete in Q1 2015, and saud completion would earn me FTE status and benefits (stock). After another 60 days, I'd surpassed all the goals. My work has always been excellent and my weekly feedback via 1v1 meetings with my boss has been uniformly positive. After I accomplished the Q1 goals, I was told I'd earned the FTE position. They flew me to the Seattle HQ under the guise of signing FTE paperwork. Instead, my direct management (VP of Sales) sidelined me, stating that the C-Suite had raised questions about my value, that it was out of his control, and that I'd need to be patient while this was sorted out. At the same time, my direct supervisors took control of my company email account, accessed my personal contacts and in-progress deliverables and reassigned my upcoming appointments. At the same time, I set out to address the supposed concerns. I obtained meetings with the CEO and CFO to address the questions about me. It seemed like the CFO and CEO weren't aware of any issues and gave me a direct vote of support. In two days, I'd received the full stamp of approval from the C-suite, but when I took this back to my direct supervisors, they told me that the position they'd set aside for me was gone. I again returned to work without a defined status or benefits.

After another three months, I unearthed a prospective deal worth $5+M in revenue. Scared by the prospect of a 10 percent referral payment (posted rate for referrals), I was hastily offered a 7-month employment contract with a nice raise and profit sharing in return for handing off my referrals. The duration and terms were set by the company. I was told that after seven months I would be rolled into the 2016 budget as an FTE.

However, I was recently let go with four months left on my seven month contract.

My employer views me as an IC yet they want to fire me like I'm at will, despite no breach. They've given me offers of support and letters of rec.

I want my contract respected and I believe I'm due the benefits received by my colleagues with employee status. I know if I file with the IRS and/or the CA state agencies, I'd probably win a determination as an employee.

But I'd prefer to negotiate with my employer, using the prospect of an IRS and CA unemployment investigation as leverage to receive the compensation I am due.

There is no written contract aside from an accepted offer sheet emailed to me from the CFO describing a seven month term with associated monthly pay and commission. I've referenced this offer sheet on my last three invoices and we've mutually followed its provisions to the letter.

Given these conditions, what are my options with regard to convincing my employer to honor the duration of my contract as well as retroactively reclassifying me as an employee and granting me associated back pay and benefits?


Asked on 11/03/15, 12:36 pm

1 Answer from Attorneys

Charles Perry Law Offices of Charles R. Perry

You need to talk in person with an employee-side employment lawyer about this.

First, you do not want advice as to your options coming to you in a public forum. You have zero confidentiality here, and could be forced to disclose anything and everything you are told here if you find out you have to sue.

Second, this situation is relatively complicated. It is likely not something where you can receive 2-3 lines of advice on your options. There is a lot here to consider, which you can work through only in an interview/conversational setting.

If there is a substantial enough amount of money involved, a plaintiff-side employment attorney may well be interested in taking the case on a contingency basis.

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Answered on 11/03/15, 1:59 pm


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