There are several reasons why many employees prefer hiring an attorney for job-related issues. Disputes between employees and their bosses are becoming more common, and binding agreements that bosses have ignored are often at the core of these disagreements. One important case about the ability of an employee with no long-term employment contract to sue his or her employer over broken promises, or for statutory violations like retaliation for opposing discrimination at work, has been followed dozens of times since 1982. The court there stated that contracts limiting the employer’s right to fire an employee, or granting certain rights to employees in an employee handbook or manual, are enforceable.
Why Some Employers Think They Can Ignore Employment Agreements:
At-will employees
The law gives New York employers wide discretion to fire employees for little to no reason. This makes them “at-will employees.” This encourages some employers to believe that they can override the contractual rights of employees, whether these rights deal with length of employment, benefits, or promotions.
Saying that an at-will employee has no recourse for an employer’s broken promises is, however, incorrect. As the court mentioned above stated in 1982:
“If the employer made a promise, either express or implied, not only to pay for the service but also that the employment should continue for a period that is either definite or capable of being determined, that employment is not terminable by him ‘at will’ after the employee has begun or rendered some of the requested services or has given any other consideration * * * This is true even though the employee has made no return promise and has retained the power and legal privilege of terminating the employment ‘at will’. The employer’s promise is supported by the [work] that has been begun or rendered or by the other [contributions of the employee]”.
Even without a contract, at-will employees enjoy many legal protections for their jobs, and conditions of work. Firing an employee for taking jury duty or serving in certain uniformed armed services roles, for example, may be illegal. Termination of a worker for reporting threats to public health or safety posed by an employer’s violation of some law or regulation is treated similarly. Discriminatory termination and hostile environments relating to race, ethnic background, national origin, religion, sex, gender, gender identity, sexual orientation, disability that can reasonably be accommodated, and other grounds are often illegal. State and local employees may enjoy additional constitutional rights relating to political activity, religious exercise, tenure, and civil service status.
Benefits bullies
A very active area of employment litigation involves promises an employer has made to provide very important fringe benefits, and then ignored or undermined in tricky ways. An employer might promise high-performing employees certain cash bonuses, stock options, sales commissions, or consideration for promotion or longer tenure of employment. Or it might tout its retirement plans and use them as a bargaining chip to deny raises in cash wages, only then to fail to fund the plan adequately, engage in corrupt practices with company stock, or even fire workers who are about to vest or take their pension.
Bullying supervisors and owners of companies may think that they have impunity to engage in such bullying with respect to employee benefits. Congress and state legislatures, however, have taken strong action to give employees enforceable rights with respect to promised benefits, including their pensions. The Employment Retirement Income Security Act or ERISA, is a comprehensive federal law prohibiting corruption and poor management of retirement plans, and dealing with historic problems such as unfunded benefits, layoffs and purported “plan terminations,” lies to workers or ignoring workers’ right to updates concerning their benefits. The idea that there are certain core standards that “all private pension plans must conform if the private pension promise is to become real rather than illusory.” There are also state laws involving plans not covered at the federal law, and actions not covered by ERISA.
Arbitration clauses
Sometimes supervisors or company owners may be emboldened to break important promises by assuming that they can force employees to go to arbitration. While arbitration may be favored in some areas of the law, it is neither automatic nor intended as whitewash of all broken promises in the workplace. The theory behind arbitration is that it can be a lower-cost way, which may be faster, of resolving disputes without burdening the courts or potential pools of jurors. However, it is not a get-out-of-jail-free card. The Supreme Court has repeatedly stated that federal law does not permit arbitration clauses to eliminate individuals’ right to a remedy when their rights have been violated. Arbitration is supposed to be an alternative dispute resolution procedure, not an employer-wins trump card. Therefore, an arbitration scheme that “could preclude a litigant … from effectively vindicating her federal statutory rights” may not be enforced.
In addition, an employer must prove that the employee has actually agreed to arbitrate the particular dispute. The mere fact that an employer has used or adopted an arbitration agreement often is not sufficient proof that a particular worker has agreed to arbitrate any given breach of contract case.
Cultivating allies
Allies and advocates can be critical when workers are fighting back against broken promises. Union members may have a right to be represented well by union leaders in disputes concerning collective bargaining agreements, employee grievances, and employer interference with unionizing activity. Even non-union members in the private sector can join forces with allies and advocates. The class action or collective action lawsuit, for example, is a way that a select few workers can stand up for their teammates and those similarly situated to them, and demand their rightful pay, benefits, pensions, and job tenure. Other times, individuals in human resources or the U.S. Equal Employment Opportunity Commission or New York Division of Human Rights can intervene against unlawful or bad-faith supervisor decisions.
Next Steps
It is important to know your rights when it comes to broken promises, unpaid wages or benefits, and retaliation or other unlawful termination. According to an employment discrimination attorney, a free consultation can help you understand your rights and take action to protect them, including by contacting human resources.