Legal Question in Employment Law in California

relied on budget from CFO, then offered much lower amount

Hi,

I work for a company in CA.

While at the company I saw an opportunity to develop a new product delivery model that would increase our business.

The idea was well received by the administration. And I did some preliminary work that verified the strength of this new approach.

In anticipation of the launch of this new program, I developed a budget with the CFO. Included in that budget was a director position that it was agreed that I would take with the official roll out of the program.

In specific conversation with the CFO I asked what would be the expected range of compensation for this position. Based upon her information the position was budgeted at 65,000. The budget was approved.

Over the last year I have worked extremely hard setting this up. Didn't pursue other possibilities, etc.

A couple of days ago I was informed by the HR folk that the CFO had approved the new position at 42,000.

If at the beginning I had been told that the new position would pay this I would have declined to go forward.

What is my position?

Thanks


Asked on 8/30/06, 1:36 am

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: relied on budget from CFO, then offered much lower amount

Unless you have a written agreement confirming the specific terms of the job offer made to you, your position is tenuous, at best. Theoretically, you could argue breach of a verbal contract or even fraud, but these claims are very difficult to prove, now even more so, in light of a recent Cal. Supreme Court ruling, that confirms employers can change the terms of at-will employment any time they want.

Based on the facts you present, these people cannot be trusted and you should make your career decisions accordingly.

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Answered on 8/30/06, 4:51 pm


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