Legal Question in Employment Law in Illinois
About 2 years ago I was promoted at work and was asked to relocate to a different city. I did so, however I knew that the offer I was given was considerably less than what my peers were making and there was no offer of compensation for moving expenses. I negotiated a one time bonus of $5,000 (grossed up) to get me closer to what my peers made (still about $8,000 less) and $3000 for moving expenses. I signed an agreement in order to receive the money that stated I would pay back all of it if I voluntarily left the company within 18 months.
About 2 months after I moved, I received an offer for a new job that was a 60% increase in pay so I decided to take it. The company that I worked for and the new one were both global conglomerates that had many different business units. Some of these business units competed against each other although the one that I was going to move to did not compete with any from the first company. As such, the first company had a policy that you were immediately terminated from employment if you gave notice that you intended to leave to work for a competitor.
I turned in my two weeks notice and I was told that I could not work for two more weeks and I was immediately terminated including an immediate cessation of all health benefits. Shortly after I left, they came to me and told me that I was also liable for the bonus money that I was given and they withheld my left over vacation money (about $1500) as part of that. I went and got a lawyer and explained that I had not voluntarily left the company and I felt that I was not in breach of contract. My attorney agreed and sent a letter to the company explaining our position and that was the last I heard from them for nearly two years.
Recently an attorney/ collections group bought the "debt" from my previous employer and contacted my attorney indicating that they would either settle for $8,650 or litigation would ensue. I feel confident that I have a strong case however I do not have the money to go through litigation since my attorney would ask for a retainer of $10,000 just to get started. I have some questions.
What is the statute of limitations in IL (the state which my previous employer is based) for filing suit on a matter like this?
What does the law say regarding breach of contract on employment matters like this? Am I in breach as soon as I notify my employer of my intention to leave in two weeks, or am I not in breach because they terminated me before I intended to leave?
Can I file a counter claim for all of the legal fees and aggravation this has caused me?
Any advice would be greatly appreciated as this is a lot of money to me and I need to make a good decision here. Thanks.
Ian
1 Answer from Attorneys
Ian, I would need to see the bonus agrement you signed ot answer some of your questions. As a baseline matter, your employer was not permitted by lawe to have withheld your vacation pay to offset this so-called bonus. You should have filed a wage complaint with Illinois Dept. of Labor (assuming you were in Illinois).
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