If I work for a non-profit organization , what can I do if the CEO will not honor my employment contract?

UPDATED: Sep 30, 2022

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If I work for a non-profit organization , what can I do if the CEO will not honor my employment contract?

The business is legally registered in the U.S. and operates overseas. I was appointed CEO a year ago, with a 3 year fix term contract. The organization was nearly bankrupt and I was brought in to turn things around. Subsequently, we had a record performance for the year; the best financial performance in over a decade. Revenue increases, cost containment and focus helped us achieve a significant positive balance. My contract includes a 25% performance bonus based on net revenue which is then split on 3 set of KPI’s. The current CEO refuses to honor the contract that was signed by the previous Chairman without any explanations. What recourse do I have?

Asked on January 23, 2016 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You can sue them to enforce the contract: when one party to a contract breaches it, the non-breaching party can sue for the money he or she should have received. However, if they don't have a local presence--not merely registration, but actual assets or operations within your state--then collecting may be problematic. You are advised to bring the contract with you to an attorney to review the situation: first, the lawyer needs to review the exact contractual language, because contracts are governed by their precise language; and second, he needs to look into the jurisdictional (where to sue) issue. But at a basic level, you can legally enforce a contract, so it's worth speaking to an attorney about this.

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