Dismissed Worker May Have Pay Coming

Q I recently had two job offers. I turned down an $8,000-a-month job in Virginia to stay and work in California. My new employer knew this. He offered me a job for $4,000 a month plus commissions.

I would be working from home and considered an independent contractor. He would pay me on retainer.

I started writing up the marketing plans, attended a few company meetings and even went to a business event representing my new employer. A few days later, I was told that I would not be needed because of lack of company funds.

What can I do? Doesn’t he owe me at least the $4,000 retainer?

--S.C., Manhattan Beach

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A I am not sure what you mean by “retainer.” The employer does, at least, owe you compensation for any work actually performed, and perhaps at least one month’s salary. California law requires that employees who are exempt from overtime laws receive a monthly salary of at least twice minimum wage. According to the labor commissioner, an exempt employee who performs work during any part of a month must receive a whole month’s salary, with certain exceptions.

In addition, if the employer misrepresented to you the security of your position, or its intentions as to how long your position would last, you may have a claim for fraud.

--Michael A. Hood

Employment law attorney

Paul, Hastings, Janofsky & Walker