A deal is a deal. There are few things as frustrating as someone not holding up their end of the bargain after you’ve reached an agreement with them—especially when that someone is your employer. Whether it is a promise to pay you commissions as defined in your commission plan or to grant you stock options as promised in your offer letter, you have the right to insist upon your employer fulfilling the promises that were made to you.

Contracts offer important protection for executives and employees, and our firm has successfully litigated and negotiated cases involving violations of commission and bonus plans, executive employment agreements (including “good cause” and “good reason” clauses), equity agreements, change of control and severance agreements, and other types of contracts. For example, we litigated and won a breach of contract lawsuit on behalf of two executives wrongfully denied their bonus following a corporate change of control. The arbitrator awarded our clients over $745,000 in bonus payments, interest, and attorneys’ fees and costs. In another case, we negotiated a $5 million bonus payment for the co-founder of a life sciences firm in a breach of contract case.

We have also won numerous lawsuits regarding sales commission contracts. Cases we have brought for breach of commission agreements have led to the recovery of millions of dollars in unpaid commissions for hardworking salespeople.

One key to achieving successful outcomes in breach of contract cases is understanding how courts and arbitrators balance traditional rules of contract interpretation with the additional protection that California recognizes for compensation arrangements. The courts, the legislature, and California state agencies such as the Division of Labor Standards Enforcement have all provided important guidance, which must be carefully analyzed and applied to a particular compensation plan.

If you have questions about your rights under an employment contract, please contact one of our attorneys.