lucky1thanx
New Member
"My kid was hired on a verbal agreement and was not fully paid. "
(all names changed)
I have a patient who is in the Mortgage business here in Washington State; let's call her "Kate." My girlfriend, "Jill," and I live as partners. I introduced Kate to Jill so that a refinance could be done on Jill's (our) home. After 9 months, and after a million reasons/excuses, Kate did not get the re-fi for Jill. Meanwhile, Kate and I had long conversations about the great financial potential in her business, and made plans for Jill to train to work with with Kate. Jill even trained one day.
Along comes summer ('03) and Alex, my 19 year-old son's return to this area from college. He's looking for work. I ask Kate if there is work for him with her. Kate agrees to put Alex to work for the summer and perhaps longer, and to train him in "both sides" of the mortgage business: processing loans, and obtaining new clients. Kate verbally agrees to pay salary and commission, $1500 a month every two weeks salary, plus $200-500 commission per approved loan "on closing" for any loan that Alex worked on (by sending out lead generation letters and/or by helping process the applications).
At first, too busy and unprepared to train, Kate gives my son Alex odd jobs around her home to give him something to do since he was hired and made himself available for work (and has a work ethic). Later, Kate started with training by showing him how to use relevant software, by giving him lead-generation mailing assignments, and taking him on calls to collect applications.
Alex brought with him three significant referrals for re-fi's as well. Although Alex called daily, on those days he COULD reach Kate, and COULD get an answer, well…there were less and less days actually "worked" even though Alex was ready, willing and able and was never told "it's over" or not to call.
Payment was spotty. "It's a commission business" was always the refrain. $50 here, $40 there, with one payment of $500. No one has ever seen a check of hers; she always pays by cash. Salary total earned was $3,750. Total paid was $1,140. Salary balance remains at $2,610. Estimated commissions earned total $1,300. We don't know the real status of the commissions (due or not) because we don't know if the loans closed. One that Alex WAS involved is was a million dollar loan where Kate should bring-in approximately $20,000 on that one loan alone. Total balance due Alex in salary and commission is $3,910. This should be "chump change" in my opinion as Kate claims earning $300,000 last year.
Alex reduced the total due him by negotiating away payment for one of the $750 pay periods during a "collection" meeting between Alex and Kate, a meeting at which I was present. Over a month ago, at this meeting, he was promised "$500 towards the balance by that Friday or Saturday," which he never received. I have added that amount back into the total.
The total amounts reflected above were also agreed on at that meeting as payable "in a couple of weeks" for the balance of Salary, and "whenever they close" for the balance on Commissions.
Kate complained that Alex only "worked" (5?) days in August. Alex answered that he was ready, willing and able for work, was never terminated, reported in daily for assignments, was led to believe to be still "hired," and was therefore unavailable for any other summer employment of social opportunities.
I sent an e-mail begging for Kate to do what she ~said~ she was going to do. I made it clear that this whole situation was torture for my son. On 09/03/2003, she answered:
"I am sorry that Alex is hurting but the facts are the facts….I work a straight commission job. Since going through the breakup with [estranged-husband], and getting sick, I have no reserves of any kind….When I get paid, Alex will get paid and I told him that. I have 1 dollar and some change to get me through till Friday. They changed my pay structure and went to w-2's when that happened an outside company took over payroll. I have no control over anything. I used to be able to get draws but cant anymore. As far as mental anguish????? Alex has worked a total of about 5 days in the last month. When Alex gets paid it will be a gift. I will pay him because I said I would pay him but come on……Is that really fair? I was sick and didn't want to do much mortgage stuff but he could have come by and mowed the yard, weeded, ect. He didn't even volunteer. I took Alex in to teach him as a favor to you and because I have a hard time saying no. I can give him some money on Saturday or late Friday night. Until then, there is nothing that I can do. It should be 500.00. there is more money coming but not this week. "
Kate does not return attempts to reach her by e-mail, or by phone from me, my son, or from my ex-wife who wants to pursue this.
So, there's the set-up. My kid was hired on a verbal agreement and was not fully paid.
He's away at college, so I present here my plan for your comments.
Alex to mail certified demand letter asking for payment in full for Salary and Commission within 7 days.
Alex to execute (limited or general?) Power of Atty in favor of his mom who will go to small claims court in his absence.
File with small claims court for $3,910
Ask for punitive damages of $90 or to the limit of $4000 which is (I believe) the small claims ceiling in WA (but I don't know on what basis to claim this).
Ask the judge to issue an information subpoena at the time of the hearing if ruled in our favor. (?)
Figure out how the heck to collect. All I know is where she and her BMW live, I know the Mortgage Broker where she does, or did work through.
Thank your for your "conversational" commentary.
"Max"
(all names changed)
I have a patient who is in the Mortgage business here in Washington State; let's call her "Kate." My girlfriend, "Jill," and I live as partners. I introduced Kate to Jill so that a refinance could be done on Jill's (our) home. After 9 months, and after a million reasons/excuses, Kate did not get the re-fi for Jill. Meanwhile, Kate and I had long conversations about the great financial potential in her business, and made plans for Jill to train to work with with Kate. Jill even trained one day.
Along comes summer ('03) and Alex, my 19 year-old son's return to this area from college. He's looking for work. I ask Kate if there is work for him with her. Kate agrees to put Alex to work for the summer and perhaps longer, and to train him in "both sides" of the mortgage business: processing loans, and obtaining new clients. Kate verbally agrees to pay salary and commission, $1500 a month every two weeks salary, plus $200-500 commission per approved loan "on closing" for any loan that Alex worked on (by sending out lead generation letters and/or by helping process the applications).
At first, too busy and unprepared to train, Kate gives my son Alex odd jobs around her home to give him something to do since he was hired and made himself available for work (and has a work ethic). Later, Kate started with training by showing him how to use relevant software, by giving him lead-generation mailing assignments, and taking him on calls to collect applications.
Alex brought with him three significant referrals for re-fi's as well. Although Alex called daily, on those days he COULD reach Kate, and COULD get an answer, well…there were less and less days actually "worked" even though Alex was ready, willing and able and was never told "it's over" or not to call.
Payment was spotty. "It's a commission business" was always the refrain. $50 here, $40 there, with one payment of $500. No one has ever seen a check of hers; she always pays by cash. Salary total earned was $3,750. Total paid was $1,140. Salary balance remains at $2,610. Estimated commissions earned total $1,300. We don't know the real status of the commissions (due or not) because we don't know if the loans closed. One that Alex WAS involved is was a million dollar loan where Kate should bring-in approximately $20,000 on that one loan alone. Total balance due Alex in salary and commission is $3,910. This should be "chump change" in my opinion as Kate claims earning $300,000 last year.
Alex reduced the total due him by negotiating away payment for one of the $750 pay periods during a "collection" meeting between Alex and Kate, a meeting at which I was present. Over a month ago, at this meeting, he was promised "$500 towards the balance by that Friday or Saturday," which he never received. I have added that amount back into the total.
The total amounts reflected above were also agreed on at that meeting as payable "in a couple of weeks" for the balance of Salary, and "whenever they close" for the balance on Commissions.
Kate complained that Alex only "worked" (5?) days in August. Alex answered that he was ready, willing and able for work, was never terminated, reported in daily for assignments, was led to believe to be still "hired," and was therefore unavailable for any other summer employment of social opportunities.
I sent an e-mail begging for Kate to do what she ~said~ she was going to do. I made it clear that this whole situation was torture for my son. On 09/03/2003, she answered:
"I am sorry that Alex is hurting but the facts are the facts….I work a straight commission job. Since going through the breakup with [estranged-husband], and getting sick, I have no reserves of any kind….When I get paid, Alex will get paid and I told him that. I have 1 dollar and some change to get me through till Friday. They changed my pay structure and went to w-2's when that happened an outside company took over payroll. I have no control over anything. I used to be able to get draws but cant anymore. As far as mental anguish????? Alex has worked a total of about 5 days in the last month. When Alex gets paid it will be a gift. I will pay him because I said I would pay him but come on……Is that really fair? I was sick and didn't want to do much mortgage stuff but he could have come by and mowed the yard, weeded, ect. He didn't even volunteer. I took Alex in to teach him as a favor to you and because I have a hard time saying no. I can give him some money on Saturday or late Friday night. Until then, there is nothing that I can do. It should be 500.00. there is more money coming but not this week. "
Kate does not return attempts to reach her by e-mail, or by phone from me, my son, or from my ex-wife who wants to pursue this.
So, there's the set-up. My kid was hired on a verbal agreement and was not fully paid.
He's away at college, so I present here my plan for your comments.
Alex to mail certified demand letter asking for payment in full for Salary and Commission within 7 days.
Alex to execute (limited or general?) Power of Atty in favor of his mom who will go to small claims court in his absence.
File with small claims court for $3,910
Ask for punitive damages of $90 or to the limit of $4000 which is (I believe) the small claims ceiling in WA (but I don't know on what basis to claim this).
Ask the judge to issue an information subpoena at the time of the hearing if ruled in our favor. (?)
Figure out how the heck to collect. All I know is where she and her BMW live, I know the Mortgage Broker where she does, or did work through.
Thank your for your "conversational" commentary.
"Max"
