Employment Contract Expires, Parties Continue

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Latest post 07-10-2011 5:14 PM by Drew. 6 replies.
  • 07-10-2011 10:18 AM

    • Mutalic
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    Employment Contract Expires, Parties Continue

    I work out of my house in Georgia.  I signed an employment contract with an Illinois corporation to do their sales and marketing.  The contract expired and we continued working under the terms of the contract.  The continued to pay me my salary, my $500 a month office allowance and pay for my insurance.

    I continued to bring in deals for them, sign NDA forms on the company's behalf and represent the company in every single way.

    Now, they do not want to pay me for commissions because, as they say, 'They did not make money on those deals'.  The total commissions were $21,000.  They paid me $2,000 saying that they did make money on one deal. 

    I told them that (1) I did not price the jobs and (2) had nothing to do with their execution, PLUS, there is absolutley nothing in the contract that even suggests I only get paid on profitable jobs. 

    There is a paragraph calling for binding arbitration.  I file for that and the company's attorney is now demanding I drop it because, as he claims, the contract was for only one year. 

    Is there any law that protects me since we did continue in the 'spirit' of the contract beyond the 12 months?

    Thanking all in advance for any input.

    Regards,

    Mutalic (Obviously, not my real name) 

  • 07-10-2011 12:23 PM In reply to

    • LG81
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    Re: Employment Contract Expires, Parties Continue

    For a $19k issue, I recommend consultation with an attorney (which could cost you up to $1,000 depending on how much s/he has to sort through). 

    Mutalic:
    Is there any law that protects me since we did continue in the 'spirit' of the contract beyond the 12 months?

    I don't know of any specific statute (although one may exist) that covers this, but it may be covered in case law.  I would tend to believe that although your contract expired, the company was acting under its same clauses, and that could help you. 

    If you had no control or responsibility over pricing or collectibility, that further works in your favor.  Please speak with a lawyer.  The company's attorney may be trying to intimidate you to give up.  While arbitration may (or may not have) gone out the window when the contract expired, you still have the ability to file a suit if arbitration is no longer a required step. 

  • 07-10-2011 12:49 PM In reply to

    Re: Employment Contract Expires, Parties Continue

    The contract no longer exists.

    There may be a cause of action basedon the continued understanding but you really need to consult a local lawyer.

  • 07-10-2011 1:03 PM In reply to

    • Drew
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    Re: Employment Contract Expires, Parties Continue

    You need to review contract with a GA contracts or labor lawyer.

    It may or may not be wored to "carry over"  or the may be some point as to mutual reliance as to wage terms in doing so.

    I do not know if arbitration is aweaker lever than courthouse suit for wages/commissions unpaid. You might be better off to force company to defend in GA.

    I would think you are a GA employee.

    Company has grea latitude to change commissions going forward---but its credibility stinks at the very least to do so retroactively.

    I think its well worth review of your options with GA lawyer.



  • 07-10-2011 4:22 PM In reply to

    Re: Employment Contract Expires, Parties Continue

    Mutalic:
    Is there any law that protects me since we did continue in the 'spirit' of the contract beyond the 12 months?

    You probably did indeed have a contract for those additional jobs you pulled in. While the initial term of the written contract had expired, when the parties continue just on as they did under the contract, that implies a contract at the same terms for the additional work done. But you may need to hire a good contract litigator to bring the company around to paying. Right now the company is probably hoping you'll bite on their line about the contract being expired.

  • 07-10-2011 5:08 PM In reply to

    • Drew
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    Re: Employment Contract Expires, Parties Continue

    Also consider filing a wage claim under GA law---if the company seeks to arbitrate it must argue the contract is in effect?

    It makes sense to me that contract could end but parties continue the wage portion by mutual performance .

     Company probably does not want to defend in GA!



  • 07-10-2011 5:14 PM In reply to

    • Drew
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    • Joined on 03-30-2000
    • PA
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    Re: Employment Contract Expires, Parties Continue

    Actually IL wage law may be more pro employee especially as to commissions--and if employer claims contract is over--then arbitration is out as well!



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