How do I collect my profit-sharing from my last employer?
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How do I collect my profit-sharing from my last employer?
I worked for family business as VP; my father was President. I was there 7 years and we had a falling out. He set up a profit sharing plan but I was never shown any info on the details. He stated numerous times there was upward of $50,000. Can he transfer this to himself or to another? How can I find out details on the account if he will not cooperate? Its been 2 years and I could use the money,
Asked on August 17, 2010 under Employment Labor Law, Arizona
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You should speak with an attorney. The short answer is: if there was in fact an agreement between you and he as part of your employment, that he would set up a profit sharing plan, that agreement would be enforceable as a contract. And if a plan were set up, it is would have been subject to certain rules, regulations, and fiscal obligations (such as a fiduciary duty), which would have been required to be honored the beneficiary's benefit. However, if there was merely a discussion or intention that he might set up a plan, that is not enforceable; if the terms of the plan required you to be part of the organization for a certain amount of time for it to vest and you were not, that may preclude you from accessing it; and generally, the terms of any agreement and the nature of any plan are vital in determining rights and responsibilities. Therefore, you need an attorney to evaluate all the particulars of your situation; and if you have any recourse here, you may well need to sue to enforce your rights.
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