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#1
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Labor law / Confidentiality Question
Long story short:
Our company's contract is going to a new company. The new company wants to hire us on at a reduced rate of pay and benefits. (Nothing I wasn't expecting) I negotiated what I considered a fair wage, recieved and accepted an offer and all seemed good. Well, 2 days later we were all called in for "new" offers. When I opened mine, it was significantly less than the original offer. Here's what I believed happened: Somehow the new company got hold of our actual wage information and adjusted everyone accordingly. Some higher and some lower. My question: Is it not a breach of confidentiality for my current employer to divulge our wage info to this new company? This is not a corporate takeover situation just a contract switch like if FedEx became your preferred carrier instead of UPS, that sort of thing. I'm considering reporting this to the state labor board. Thanks!
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-Evan Benz Fleet: 1968 UNIMOG 404.114 1998 E300 2008 E63 Non-Benz Fleet: 1992 Aerostar 1993 MR2 2000 F250 Last edited by KarTek; 08-02-2010 at 08:03 AM. |
#2
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#3
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The basic point of law in situations like this comes down to who owns the data. The company owns it's salary information, not you, and so can do whatever it wants with it as long as it does you no harm. You have an arguable point that they have done you harm by doing this, but legally, it's probably pretty weak. The devil is in the details of "harm". In many states it has to be shown that they did harm to you out of actual malice. If they can say they did it in order to benefit their stockholders, etc, they have a defense. In other words, you are in an area where an attorney is definitely required. If it were me, I would strongly consider a lawsuit because they would probably pay you a pretty good chunk just to go away because you have arguable points of law that you can drag through court at great expense to them even if they win, so they might slap 50 grand or more on you to drop it, but your job is kaput in the process.
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#4
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When a company is purchased due diligence is part of the transaction. It's normal and legal for the selling company to disclose all it's risks, obligations, lawsuits, A/R, A/P etc. When you say some employees were given raises and some were reduced the buying organization was probably trying to balance wages against with what they are currently paying their employees. Very common.
Negotiated pay or not you are owned by a new corporation. Re-apply and take or reject what offer is made.
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#5
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Unless you have an employment contract that expressly makes such information "confidential" the answer is no.
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#6
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Quote:
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#7
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Thanks for the replies. I wanted to stress that this is NOT a takeover or purchase. Simply one company handing off a contract to another.
I'm probably just going to extract myself from the situation and find another job. I have a couple other dogs barking up my tree so I'm not worried about it.
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-Evan Benz Fleet: 1968 UNIMOG 404.114 1998 E300 2008 E63 Non-Benz Fleet: 1992 Aerostar 1993 MR2 2000 F250 |
#8
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Hey, the first visit with an attorney is usually free, the contract aspect really clouds the issue - I'd definitely get a legal take on it.
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#9
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I have a family friend who's an attorney so I'll run it by him and see if it has legs.
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-Evan Benz Fleet: 1968 UNIMOG 404.114 1998 E300 2008 E63 Non-Benz Fleet: 1992 Aerostar 1993 MR2 2000 F250 |
#10
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I'm no employment law expert, but my guess is that an employer is allowed to tell anyone it wants what it pays its employees, unless there is a specific agreement to keep it secret. TX76513 put it well, I think.
I also doubt that the existence of a previous offer and acceptance changes your situation, unless the offer promised to keep you on for a certain period of time. Here in Virginia, employers can generally fire employees at any time, whether they have a reason or not. If an employer is permitted to fire an employee, it certainly should be permitted to lower that employee's pay. |
#11
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Yes but is he an employment attorney. This stuff is going on everywhere and getting someone to represent you could be(most likely will) be next to impossible if you were classified as employment at will--but even if there was a contract it would be very hard--thats one of the realities of post oct 2008 if you were not upper management--The guys with the money are the only ones a lier -i mean lawyer will give the time of day to.
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#12
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Talk about timing - I'm in a similar situation - work for a company that is contracted to operate the thermal energy plants for a university, and has had that contract for over 30 years - 5 year renewal contract was supposed to be signed back in May, but as far as we peons are allowed to know, my guess is no contract as of yet - word is the university is looking to cut costs by having their own people take over operations of the plant - and given what I've heard of the university's pay scale for their workers, it'd most likely be a significant cut in pay for any operators they hire over, and considering the present company doesn't pay any great shakes either....
But I saw the warning signs a few months back, have kept in touch with former coworkers that moved on to similar jobs with other companies that are still growing and hiring, already have a couple irons in the fire, and fortunately am in the financial situation of being able to walk away from the preseent situation and survive until I find something else, if the above does come to pass. Do keep us updated as to what happens. At least for my part, I definitely feel your pain.
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#13
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There's your legal opinion, KarTek.
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#14
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Apart from legal battles, I would have great hesitation to work for an employer that makes an offer, then rescinds it and replaces it with a lesser offer. At best, the management team made a substantial error and cannot be judged competent. More likely, they saw an opportunity to screw with you and took it. If you have the means and ability to move along to a place that will treat you better, now looks like the time to do so.
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#15
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Quote:
Unless you are in possession of a contract with your company to keep terms of your employment confidential, I believe you are expecting something that cannot be. And to your mention of "negotiating what you considered a fair wage," unless you have a valid signed contract stating such; you are again out of luck. No verbal, or potential agreement has to be upheld from that standpoint. Blowing smoke about your future with a firm in conversations mean nothing if you do not have a valid offer or contract with them laying out all the terms. Unless you have an actual contract, talk, theoretical and potential offers are just that - theory and baseless. |
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