What to do if my employer is going back on a verbal contract and mutual understanding?

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What to do if my employer is going back on a verbal contract and mutual understanding?

I am an HOA property manager and have been with the same company for almost 2 years. Our verbal agreement when hired was that I was to be salary plus 5 % of a 10% oversite charge to the association for any work that I do for my associations. All has been good and paid until now. The owner has fallen on hard times and now on a job that my half would be around 12k (total being 24k) he is going back on our verbal agreement and I’m only getting 3k. Is this legal? What can I do for him stealing money from me as the employee?

Asked on April 19, 2012 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Your employer may not retroactively change the terms of  your compensation: that is, if you have already done work for which you should be paid $12k, he needs to pay you $12k. If he does not, you could sue him for the other $9k, for breach of contract (oral contracts, including the terms under which you work, are enforceable).

Going forward, your employer may change your compensation at any time, so long as  you do  not have a written contract for a fixed period guarantying your pay. The change would only be effective from the time you are provided notice of the change forward, or for future work; it will not apply retroactively to work already done.


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