Consumer Law, Warranties Employer refuses to pay incentives per contract

[aw62185]

Hello all. Just looking for a little advice and assistance in this matter. I am working for a small business with very few employees and have been charged with a great deal of responsibility. A little over a year ago I agreed to a 1-year contract (emailed to me by employer, but not specifically signed by either party) that specified my weekly wage of $x/week, a 6 month bonus of $3000 and a year (12 month) bonus of $5000. During my employment, my employer has consistently tried to avoid paying monies owed, at one time cutting my weekly pay by 40% due to "no real cash flow" for the business and also delaying my 6 month bonus by 2 months. Now, recently, my year bonus has come due and I've yet to see a penny. I have brought this up to my employer numerous times, both in email and in verbal conversations. He acknowledges the debt but keeps putting it off, coming up with excuses about lack of funds, projects need to be worked on etc. and overall dismisses my every word. In addition, I am to receive commission for sales as they are completed (per numerous emails from employer but not specifically outlined in my original contract). I have been paid 2 smaller commissions for completed sales and am still awaiting a $2200 payment for a larger sale that occurred 4 months ago. Again, my employer has acknowledged in writing (email) that these monies are owed, but refuses to pay them in a timely fashion. Again, the employer (also sole business owner) references terrible financial times, yet he continues to drive an outrageously expensive car and purchase a $2 million house and paint the interior for a little over $30k. Financial problems, huh? I have told him countless times that I have a daughter who was recently sick and we have incurred thousands in medical bills (thank you, independent insurance -- employer doesn't offer any benefits). I truly need these funds and now when I inquire about them I am somewhat dismissed and given another lengthy list of tasks and projects to complete. Just wondering if anyone has some advice about whether I should simply quit and go to small claims? The total due is $7200 (not including the $2400 owed from reducing my wages for a 2 month time period in the past) which is within the limitations for small claims in MN, my home state. Also, this employer has treated me as a 1099 and I have paid my taxes to the IRS quarterly, but I am clearly an Employee by every sense of the word and wonder if I should really stick it to him by reporting him to the IRS as well? Ugh. Any and all advise would be greatly appreciated -- thank you kindly for taking the time to read this! :yes:

 

[Michael Wechsler]

You are far from the first person who works for a wealthy individual who could care less about his employees and claims that stiffing them is "just business." Legally he might be able to fold the business and cause you a larger problem and perhaps it is a good idea to quit and send a demand letter - after all, what good is it to have an employer who doesn't pay you for work? I don't know all the details of your situation but you want to make sure that you get paid before he drains whatever cash remains in the business. I don't know what to tell you except that you have a choice - in his mind your employer thinks his financial situation is irrelevant to "the business" and clearly you are lower priority. It's up to you to do what you feel you must do, unfortunately, and that may mean small claims court and possibly suing a second time for the second claim (you may do this.) Best of luck to you and glad to discuss more if you wish.

 

[army judge]

To the OP:
What are you called in the contract of employment?

What performance measures for payment does the contract detail?

What is the frequency of payments put forth in the 'document'?

If you're paying the taxes quarterly, you are by definition a contractor.

Unless of course, the 'contract' says differently.

Will you expound on your purported employment contract?

You indicate the contract was never signed.

Do you understand the ramifications of that act?

There are remedies to that oversight, however.



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