Morey v. C.A.T.

Congratulations to our Rachel Goldenberg on her trial victory  in successfully defending a constructive dismissal claim based primarily on an alleged material change in compensation.  The plaintiff also made allegations regarding the health and safety of the trucks he drove.

 Our client had acquired a business and then subsequently proceeded to integrate the employees from the acquired enterprise into their business, including their compensation scheme.  It is important to note that the plaintiff, and others similar to him being transitioned, did not earn an annual salary.  Rather, these employees earned  wages based on a number of variable factors, including how much an employee chose to work.  Their compensation varied throughout their years of employment and would continue to do so under the new scheme.  Furthermore, shortly after the compensation change, the plaintiff went on medical leave and remains on medical leave to the present.

The court found that the plaintiff’s perceptions or feelings about the new compensation plan did not constitute a material detrimental change.  Further, the court found that based on the evidence, the plaintiff might have actually earned more compensation under the new plan.  The court took issue with plaintiff’s counsel trying to cherry pick previous years earnings to somehow prove a change in compensation.  This just doesn’t work when you are dealing with employees earning variable compensation week to week and year over year.

With regards to the health and safety issue, and other bad faith allegations, the court found the plaintiff had no evidence to support these myriad of allegations.  A complete victory.  However, practically speaking, given that this was a constructive dismissal claim, the plaintiff is still an employee of the company on medical leave.  The relationship continues.

If you are interested in reading the entire decision, please check out this link.