Legal Question in Employment Law in Washington
implied contract
My daughters work for a restaurant, that offered an incentive bonus to the employees, if they saved the company money over the next year. The employees came up with many many ways to do this and met their goals The company now says just prior to the pay out in about 2 weeks that there has been a mistake on there part (the company) and that they can only pay them approx 1 third of what they were told they would get. there are about 30 employees involved. is there a law against this?
1 Answer from Attorneys
Re: implied contract
Yes, I think it is a contract, and other law also applies. How much is in controversy? Depending on the amount, the options for your daughters and the other employees would include getting a lawyer together, suing in small claims court on their own separately, contacting the Department of Labor and Industries (together or separately), or just protesting to the employer and asking for the money. Again, which option is right depends on the amount in controversy and the other circumstances. There are probably also other options I have not thought of, since I know very little about the case.
But the law in Washington is fairly clear that if you work under certain terms and do your part, the other side has to do its part, too. In the employment context it's part of the "procuring cause" doctrine, and comes up the most when e.g., a real estate broker locates the eventual buyer, but is fired before getting the commission. Just as that broker is entitled to the commission, your daughters should be paid under the terms that were worked out, not some other terms unilaterally imposed after the work was done.
Now maybe politically on this job they would rather make some compromise, or make brownie points with the owner (if they really think that will pay off) by changing the deal somehow. That is a practical question which is related to your legal question. While it is probably illegal to retaliate against them for protesting the unpaid wage, again it depends on the facts and amount in controversy whether it's worth the fight.
Feel free to give me a call or e-mail to follow up.
Steve Teller
(206) 324-8969