Settlement Agreement not fulfilled by former employer
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Settlement Agreement not fulfilled by former employer
I won a case through the Labor Commission with an employer who failed to pay me on time. My former employer decided to appeal the case and shortly after appealing contacted me to settle. I negotiated and signed a Settlement Agreement and Waiver of Claims. On this form it states that they would deliver the settlement to me no later than 10 Days. The 10 days has passed and they failed
to pay me What can I do next? Does this make the Settlement I signed void? Can I still take them to court?
Asked on February 1, 2018 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You could sue your employer for breach of contract, to enforce the terms of the settlement agreement and get the money owed to you--the settlement is a contract, and its terms are enforceable in court.
Alternately, their failure to pay, as a material (or significant) breach of contract would let you treat the settlement as terminated by their breach, ignore its terms, and sue them the same as you would had you not entered into a settlement at all.
You have the option to sue to enforce the agreement or to treat it as terminated.
The lawsuit to enforce the terms of the settlment is a quicker, easier, simpler one--all you have to show in court is the terms of the agreement and you have not been paid as per it. It is very straightforward.
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