Legal Question in Employment Law in California
I was offered a job from a large International Company while I was working as a Consultant in Europe. I accepted the offer, which included a nice $10,000 sign-on bonus which was to be used for my relocating costs.
After spending over $6500 getting back to the city in the U.S. where I was to be working, and being hired, I was fired within a week and naturally they refused to pay the sign-on bonus. They paid me a weeks salary, but they have yet after 1 month, to even pay me for "legitimate business expenses" I incurred while working for them during that 1 week (which amounted to around $750 which receipts were submitted for).
The employment contract was an "at-will" contract like most are, but the only legal language that said I would NOT get the sign-on bonus would be if I voluntarily left the position prior to 12 months, not for involuntary discharge. The sign-on bonus was to be paid in one lump sum on the first pay cycle.
Do I have an legal recourse to still retain this sign-bonus, or at least recoup my relocation costs?
Thank you,
Jim
2 Answers from Attorneys
If you believe that the company engaged in some kind of misrepresentation, California law might allow you to bring suit for all of your costs and penalties. In addition, from what you write, it appears that you might be entitled to the sign-on bonus because you did not voluntarily leave the position. You certainly had a lot of moving expenses.
You might have a small claims lawsuit in California, where the ceiling for a claim is $7,500, or if there was a misrepresentaiton, you might have a lawsuit for which you might consider legal representation for potentially much more money.
The terms of your agreement[s] determine your rights generally. You may have grounds for action to enforce those promises. However, the Labor Code also provides a remedy for 'fraud' in the inducement, on which you could bring legal action. If serious about pursuing these issues, feel free to contact me.