Contract Employee Fired, Texas

Here Goes.

I signed an employment contract to manage a mortgage broker office in texas 12 months ago. The contract was for 3 years and the pay was 8k per month with a bonus paid each quarter based upon profits. I was supposed to get 20% of the net profit as a bonus. In addition, after the company had profits of $170k I was to be 49% partner, with the buy in being the profits I made the company. During our initial meeting I was told the expenses were leads, phone, IT, rent, and insurance. The contract called for the company give me P&L's each month. After the first quarter, we had revenue in excess of 190K, with $85k being profits based upon my calculations. After reconciling the P&L, I met with the owner to go over some inflated costs I notice in the spreadsheet. He had his family's insurance, a personal secretary, as well as other business expenses related to some of his other companys' deducted from the profit I made for the mortgage company. We discussed these items and he adjusted the P&L accordingly. Since then, a number of events have transpired. I will try and keep this part brief. I have not been given another P&L since then, been asked to reduce my pay from 8k to 6k, and after I sold another mortgage company I started for him from the ground up for 60k...I was fired. I was not given my last paycheck and was fired. A week before I was fired, I asked him for my $26k bonus and he told me that if I did not take the bonus and paid him an additional $75k that I could have the whole company, not just the 49%. I said that sounded great, put it in writing in addition to the expenses I would be responsible for. A week went by and he did not put anything in writing. The day I was fired he called me and asked me when were we going to start our "new agreement" I told him to put it in writing and he said no need, that he was telling me exactly the way it was going to work. He said he needed an answer by Monday. I was fired the same day we had this conversation and was not given my last check.

1 answer  |  asked Aug 6, 2007 4:37 PM [EST]  |  applies to Texas

Answers (1)

Joe Gilbreath
Paid claims.

A starting point would be to file a claim for pay with the Texas Workforce Commission. Going through them may result in the loss of legal remedies but will not require paying an attorney a retainer and fees.
In all probability you will end up needing a lawyer in your locale experienced in litigation, employment law, and Texas contracts. If you pursue the matter I expect you will be successful.

posted by Joe Gilbreath  |  Aug 6, 2007 6:13 PM [EST]

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