Employee refusal of promised property on payments

[feddy]

Jurisdiction

Iowa

So shop owners came to discussion with an employee to relocate them in a particular property if employee works for them for at least 10 years. Not in writing. Shop owner makes paychecks in wife of employee, under the table. Employees parents put 5000 down for property and shop owner paid 5000 CASH. 10000 down. Deed in employees name. Remodel begins. First half of receipts in employees possession. Shop owner one day comes to employee and says we'll how about you just buy the house for 45000? Employee confused due to the initial agreement of 10 years work for the gift of the house. To show appreciation for employment. So the shop owners position now is'sign the deed over to us and we will give you 5000 to employee. Employee is angry, with the deed in employees name, and wants 10000, for all the frustration, or for whatever reason, after all it IS legally his property right? So how does this situation play out? Would shop owner say we'll we are the ones doing the remodeling with no contract or agreement. Would employee pay supplies and labor for remodel and keep the property? What leverage does the shop owner have over an undocumented employee? Isn't it plain and simple, the employee has the deed in his name? Could he in actuality ask for whatever he wants for a price? Instead of just the 5000 or 10000? Side note this is three days before Christmas and they are holding his latest paycheck, avoiding it as sum sort of leverage.... He has the deed, who cares, right? >D

 

[adjusterjack]

My opinion for the two cents that it's worth is that the employee has the upper hand because the property was deeded to him and there is nothing to compel him to deed it back to the employer.

There is also nothing to compel the employee from varying from the 10 year work agreement unless there is a court order.

The problem there is what happens if this gets to court. The 10 year work agreement may be unenforceable under Iowa Code 622.32:

» Iowa Code > Chapter 622 – EvidenceLawServer

But may be covered by the exceptions in 622.33 and 622.34.

Another problem is if the employer fires the employee. That would mean that the employer is in breach of the agreement. Unfortunately, contract law generally prevents a non-breaching party from profiting from the breach so a court might award some money to the employer. No way to predict how that turns out.

The paycheck is an entirely different issue. It has nothing to do with the property deal. It is illegal to withhold the paycheck without the consent of the employee. The employee need only file a wage claim with the state to put the employer on the hot seat for withholding it.

https://www.iowadivisionoflabor.gov/sites/authoring.iowadivisionoflabor.gov/files/WAGE.claim_.pdf

 

[Highwayman]

who cares, right? >D

Right. Why do you care?

 

[army judge]

So shop owners came to discussion with an employee to relocate them in a particular property if employee works for them for at least 10 years. Not in writing. Shop owner makes paychecks in wife of employee, under the table. Employees parents put 5000 down for property and shop owner paid 5000 CASH. 10000 down. Deed in employees name. Remodel begins. First half of receipts in employees possession. Shop owner one day comes to employee and says we'll how about you just buy the house for 45000? Employee confused due to the initial agreement of 10 years work for the gift of the house. To show appreciation for employment. So the shop owners position now is'sign the deed over to us and we will give you 5000 to employee. Employee is angry, with the deed in employees name, and wants 10000, for all the frustration, or for whatever reason, after all it IS legally his property right? So how does this situation play out? Would shop owner say we'll we are the ones doing the remodeling with no contract or agreement. Would employee pay supplies and labor for remodel and keep the property? What leverage does the shop owner have over an undocumented employee? Isn't it plain and simple, the employee has the deed in his name? Could he in actuality ask for whatever he wants for a price? Instead of just the 5000 or 10000? Side note this is three days before Christmas and they are holding his latest paycheck, avoiding it as sum sort of leverage.... He has the deed, who cares, right? >D

I graduated from a law school in Iowa.
I'm still licensed to practice law in Iowa.
I suggest you speak with 2 or 3 licensed lawyers near you.

You have a mess.

Much of what you've described is unenforceable as matters of law, the rest is hazy at best.

Your employment is an illegal arrangement.

If you're pinning your hopes on using your employment to legalize your ownership of property, don't.

But, don't take the word of a stranger on the Internet, ask some lawyers in your county, before this goes much further.

HINT: Slavery and indentured servitude (the latter is what you described) are illegal by constitution and statute.

HINT 2: The State of Iowa and the IRS, along with Social Security & Medicare, must be paid out of wages earned. Iowa also requires other fees/taxes to be paid by employers.