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3 YR CONTRACT TERMINATED WITHOUT CAUSE Texas

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  • 3 YR CONTRACT TERMINATED WITHOUT CAUSE Texas

    I was 1 year into a 3 year contract and was terminated over the phone. I had a contract to buy the business during the 3 years and have ownership after a certain profit level was met. I had paid the owner 120k of 170k required to be 1/2 owner. Until the profit level was met, I had the title of manager and was paid a salary and quarterly bonus. I never took a bonus, instead left it in the company as profit in order to obtain ownership faster.

    2 weeks before this, I asked the owner for my bonus of 24k and he told me no that he was not going to pay me that he would rather shut the company down. We aregued back and forth and in the end, he said that it was not a good time for him to pay but he would think of something. 2 days later he said that if I did not take the bonus and paid him 75k more instead of 50k I would own the whole company. I asked him to put it in writing. 2 weeks went by and he never put anything in writing after I asked him about it several times. 3 weeks after the conversation he called me and told me I was fired. He owes me a bonus as well as my last check. In addition, I was hired as a contract employee in "our written contract" and based upon the contract, I could not work for any one else but him and had to be in the office during normal hours. Based upon those items I may have a FMLA case as well. Knowing that I was going to be part owner, I worked 55-60 hours a week, paid my own taxes and was never paid any overtime.
    In the contract, it states should a dispute arise arbitration would be the means in which to settle the dispute. In addtion, it says that I must pay for all costs invovled in arbitration.
    At this point I know I have been railroaded out of bonus, last check, and ownership in the company. I do not know what to do...please advise. I ahve attempted to contact him several times and have been told that I will not be getting any money and he does not want to talk with me. The had a new manager the next day.

  • #2
    I don't see where you have a FMLA (Family Medical Leave Act) case from your post. However, you might want to contact an attorney & take the contract along.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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    • #3
      I believe I was missclassified as a contract employee instead of a w-2 wage earner.

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      • #4
        What does FMLA have to do with this? You totally lost me there.

        If you have a contract, you really need to take it to an lawyer to review. No one here can give you advice based on a contract we have not read.
        I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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        • #5
          FMLA relates to protected medical leave. It has nothing to do with this situation.
          The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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          • #6
            Just to clarify, there is no such thing as a "contract employee" when it comes to wage and hour coverage. You are either an employee (with or without a contract) or an independent contractor (with or without a contract).
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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            • #7
              Agreed. The following article does a good job of discussing worker classification issues.

              http://www.payroll-taxes.com/articles/art2.html
              "Reality is that which, when you stop believing in it, doesn't go away".
              Philip K. **** (1928-1982)

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              • #8
                Regardless of the labor/employee issue. It looks to me that you paid in quite a bit (70%) for part fo the company and haven't received anything. I'd contact a lawyer ASAP. Assuming a breach of contract, you may be intitled to some/all of that back. Not my area here. You'd have to have a lawyer look over the contract(s) to determine what you can pursue. DOL can't help with that part.

                -Tim
                Busy B Realty - Honey Run Apiaries

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