Legal Question in Employment Law in Maryland

Passed Over

Hired to oversee parent and other companies. Employer concerned he never saw money from earnings.Within one year,I was able to pay him first ''bonus'' check in excess of $1M.

I became involved with the large company. During my first year I also saved company over $300,000 in state taxes.

I now have the title of CFO for all of the companies.

Originally hired at a salary of $55,000 with promise of increase to $60,000 after 90 days. I had to wait 120 days.All employees are reviewed in July. At first review, I was given a bonus of $10,000 with promise of further review. It never happened.The next July I was praised for my performance, given a $13,000 bonus and a 3% cost of living increase, told I would have a review to increase salary.It didn't happen.

The young lions receive pay increases from $20,000-$35,000.

The exec admitted that not following up on all of the promises of salary increases was ''probably one of the worst things I've ever done to an employee.'' He gave raise to $70,000 retroactive to this past July but subtracted the COL increase .

I am 60 years old.The exec knows I don't want to search for another job at my age. I am the lowest paid manager in all of the companies.


Asked on 6/11/03, 12:24 pm

3 Answers from Attorneys

Lawrence Holzman Holzman Law Firm, LLC

Re: Passed Over

If you feel that you have been discrminated upon based on your age, you should definately seek legal counsel. You should do so quickly becuase there are time deadlines that may pass and preclude you from obtaining relief.

You will probably need to show that your differential pay is for similar level and type of work. That can sometimes be difficult, but it's totally fact specific to each case.

Please contact me if you would like to chat about evaluating your case.

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Answered on 6/12/03, 6:07 am
Ana Avenda�o Law Office of Ana Avenda�o

Re: Passed Over

I'm not clear on what you are asking: are you thinking of filing an age discrimination claim? I need a lot more information about the company structure, management etc. to give you an indication if you have a valid claim. Also, what other evidence of age discrimination have you seen? Comments made by people? Anything written down? I'd be happy to talk this through with you. My number is (301) 874-0346.

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Answered on 6/11/03, 12:55 pm

Re: Passed Over

If you are asking whether you have an age discrimination claim, probably not. You are well compensated and apparently received most if not all of what was promised, so any problems are probably: (1) not related to age; and (2) even if slightly related to age, probably do not rise to the level of discrimination. (It would be different if everyone else received increases except you, and they are all inder 40, or if the facts further point to age issues. Note: There are all sorts of reasons the "young lions" receive large raises, including that their base pay was probably a lot smaller to begin with since they have not worked that long.)

If you are asking whether you have a contract claim for the increase in salary, it's complicated but probably no. You received and accepted the increase, although minus COLA, as you accepted not receiving the increase for some time, by remaining at work and accepting the pay. Assuming there was a valid contract for the increase to begin with (that is not a given - it may have been just an unenforceable promise), what you now have is a new contract which probably replaces the original and defeats a claim for damages under the original. I'm not saying there is no argument to be made, but it is likely that there is no good contract argument in the end result. (It is also possible that there was never any enforceable contract and that, as an employee at will, the company has the power to determine your salary as companies usually do. So you either accept it, try to renegotiate, or quit.)

In any case, you are getting paid well and certainly don't want to sue, spend lots of time and money on a risky case, and risk poisoning the relationship. From a practical standpoint, it seems that things are best left alone.

Certainly, if you can approach the boss without risking reprise and diplomatically state your case that you should receive more compensation based on the earlier promise, try it. But don't make accusations or cast blame, and don't jeopardize your job.

Bottom line, make sure you see the forest from the trees here. You received large bonuses and a retroactive pay raise, and have a good job at a good salary. Maybe everything has not gone perfectly smoothly, but that does not make a case of discrimination. And, as I said, there's not much of a contract case either, especially because you have virtually no damages (since you received the bonuses and are getting the increased salary now).

Hope that helps.

Jeff Sheldon

Jeffrey L. Sheldon, Esquire

The Sheldon Law Firm

6932 Mayfair Road

Laurel, MD 20707

301.604.2497

fax: 301.776.3954

[email protected]

http://www.SheldonLawFirm.com

Disclaimer: This posting does not and is not intended to constitute legal advice. It is not confidential, nor is it privileged, and it does not create an attorney-client relationship. Please consult with an attorney for advice specific to the facts of your case.

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Answered on 6/11/03, 11:54 pm


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