16th Mar 2010

Legal Contract of Employment?

  • I have been calling around the last couple of days and am having a hard time locating an attorney who's case load is such that they have time to pursue this case. I need some guidance as to my legal rights on a few items and what other resources short of an attorney might help me pursue the right legal course of action. My questions come in three forms, those being; Employment Relationship - What is my employment relationship as viewed by US and State Govt and how to go about reporting the company? I have never received health or other company sponsered benefits. Do I legally have an enforcable employment contract? - Oral, Implied or Written. Please include and case law in the state Oregon or other applicable states. Specifically, how can I get them to take ownership of payroll, unemployment, FICA and other taxes that I will have to pay myself if the relationship is deemed to be one of an Independent Contractor. One last thing on the contratural relationship. Orginially, my bill rate was $65.00 as noted on our original signed agreement. They verbally asked me to reduce this to $45.00 an hour in June, which I honored. Can I go back and bill them for the difference if they refuse to honor the contract they stiffed me on? Legal representation - If I cannot find a lawyer to take this case, what are my other options to seek monatary damages. Company - $27M Privately held company in Portland Oregon area. Company is equally owned by four siblings, 25% each. Recently, the company elected three new Board members from outside their family. Board now consists of the four siblings, their father and three outside directors. Employment Relationship - Started with company in February 2003 on an anticipated 3 month consulting basis to manage their relocation In June 2003 company asked me to stay on and reengineer their logistics operations. I Have been submitting invoices for $65.00 in February 2003 through June 2003 and $45.00 per from that point on. In my research, especially as it relates to the published Microsoft case I came across the parameters used to establish employment status. From those, I can highlight the following: Integration into Business Operations - All the work I have performed over the past 15 months has led me to be deeply integrated in the operations of the business. Continuing Relationship ? The relationship has not only been a continuing relationship but has involved increased responsibility for growing the business and increasing the profits of the company. Work Performed on Employer's Premises ? All work over the past 15 months has been at the Employer?s premises. Payment by Hour, Week, Month ? I have always been paid on an hourly basis for hours worked Significant Investment ? I have invested no money in the tools required to complete my responsibilities Working for More Than One Firm at a Time ? I have had no other sources of income for the extent of time I have been employed Making Services Available to the General Public ? I have not marketed or made my services available for payment to any other companies. I also had keys to the facility and was responsible for all security up to and including the assignment of Security codes. Legal Contract - To date, the increasingly growing responsibilities I have taken on for the company have let to a savings in excess of $500,000 for the company against last years income statements. Approximtely 3 months ago, two of the sharholders (sisters) approached me regarding a third shareholder (their brother), the President of the company, who had embezzled in excess of $100,000 from the company in year 2002. Because of these trust issues with him, his lack of leadership in other areas and my display of leadership,integrity and background with the company, they inquired as to my interest in taking his seat as President and leading the company. I told them I would be highly interested. The two shareholders said that if I would forego other opportunities for employment (I currently had a VP offer on the table with another company) that they would pursue this with the board. Ultimately on the 29th of June, the Board voted in favor of this change (I have copy of the board meeting minutes). At that point, the Board (including current President who ultimately said he supported the decision and the change) committed verbally to deliver me an employment contract and compensation plan. They said the comp plan would consist of a base salary (close to six figures) and bonus incentives, half of which was immediately payable and the other half that vested over a five year period. Ultimately, I was given a draft of that contract by one of the shareholders for my review. Unfortunately, it was for a position other than that whiich was originally committed by the Board; it was for a VP level position (current President was chartered with drawing up the contract). Bottom line, the family decided that for family reasons, they could not remove their Brother from the President seat. I I was then told by the Brother that since my loyalty had gone to his Sisters, he did not see me being part of his team and asked me to leave the company. Do I legally have a contract of employent either by oral or implied status? Is the written contract that was provided to me enforcable even though neither party had signed it yet? I also have email generated from the President to the Board indicating that he was going to present the contract to me and that he was looking forward to helping me be successful in assuming his position. Bottom line.........I got railroaded and need to be able to take action against these people for my own financial reasons and so they just plain are not allowed to do this to other people in the future. One other point. I am aware of some other illegal activity by the President as it relates to State govt.. If I blow the whistle on them after I have been terminated, can I be legally charged in a retaliation claim? This is nothing short of a gross injustice and any information you can supply me to provide help would be appreciated.


  • With no signed contract, you are at best an "at will" employee which means they can end your employment / services at any time for any reason (except for illegal discrimination based on race, religion, etc.) Although they have been unfair to you and treated you poorly, you really have no legal case for the new position, for your old position, or for repayment of the discounted rate you agreed to. Unfortunately, I can see why no lawyer has been interested in taking this case. You could blow the whistle on their illegal activity, and this would be the right thing to do if you are sure of the illegal activity and honest in your reporting. However, this will not get you anything personally.


  • Perhaps neither resarch_help nor I read your question carefully. Did reasarch_help understand correctly that you have no contract? Even if you have a written contract it likely contains language limiting how long they need to pay you. You likely will do better asking how they can further use your services. Lawyer boo-hiss. Neil







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