Legal Question in Employment Law in Virginia

Employment Contract

To whom it may concern:

I was laid off by my former employer because of a loss of contract, and I was told that because I did not spend a year working for this particular company that I would not be able to collect the earnings for the vacation time earned.

However, on my date of hire, I was given a contract to sign. It states that if the employer terminates me at their convenience, ie loss of contract, that I will be compensated for the vacation time earned. This seems to contradict the premise of the Service Contract Act. Could you tell me which one of these trumps the other? Does the employment contract trump the Service Contract Act or does the Service Contract Act trump the employment contract? Or is this a gray area?

I did contact the HR department for this company, and informed them of the situation. To say the least, the personnel to whom I spoke, was not happy. He essentially informed me that the employment contract meant nothing because of the Service Contract Act. I am not sure if this is accurate.

Please advise me on this matter. Thank you for your time. Have a nice day.


Asked on 1/10/04, 9:52 pm

2 Answers from Attorneys

Keith Stern Shavitz Law Group

Re: Employment Contract

Florida has no Service Contract Act, so I can only speak to Florida law. Thus, if the contract is enforceable under Florida law--and you worked here in Florida--then the contract would be required to have a specific term--from Jan 1 through Dec 31 for example. If the contract has such a term, then it would seem that the other language you've described entitles you to be paid for vacation. However, Florida law does not otherwise entitle employees to vacation pay--employers may give it if they like, but are not required to do so. For further assistance, please feel free to contact me at (305) 755-9441.

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Answered on 1/12/04, 12:48 pm

Re: Employment Contract

I do not concentrate in government contract work, so I do not have the definitive answer for you.

That said, here are my thoughts. A personal contract should override the general provisions of the law. I do not believe the SCA was meant to prohibit employers from giving more to their employees than they have to. So, if the employer put something in the contract they shouldn't have, they are stuck with it.

Beyond that, even if there is a legal argument that the vacation pay is invalid under the SCA, you would still have "quasi-contract" arguments that are based in equity (i.e., fundamental fairness). These are called detrimental reliance, quantum meruit and unjust enrichment. In essence, you took action (working) based on the promise that you would get the vacation pay if worse came to worse. You are therefore entitled to benefit from that promise, and the employer may not be unjustly enriched, i.e., get the benefit of your work without paying for it properly.

So it seems that you have both contractual arguments (you should be paid according to the contract), and equitable arguments.

One last point. I am guessing here that the SCA actually has nothing to do with you. HR is probably confusing the fact that the employer should have only promised you what they could afford to pay under their government contract, with what actually happened. In other words, the employer can not back out of the contract by hiding behind what they should have done, even if that would have been allowed by the SCA. Rather, they should honor what they actually did, which was to promise you the vacation pay. (Also, they probably do not want to pay you because their government contract does not cover the pay. Again, that should be their problem, not yours.)

If you want, call me for a free consultation. I might be able to help you on a contingency basis -we'll take a shot at getting the pay for you. Or, If the vacation is a significant amount of money and you prefer a specialist, you could call the Florida Bar and get a referral for an attorney who concentrates in gov't. contracts.

Good luck.

Jeff Sheldon

Jeffrey L. Sheldon, Esquire

The Sheldon Law Firm

17804 St. Lucia Isle Drive

Tampa, FL 33647

813.986.7580

(f) 813.986.7489

(Admitted in Fl., MD, D.C., and Pa.)

[email protected]

http://www.SheldonLawFirm.com

Disclaimer: This posting does not and is not intended to constitute legal advice. It is not confidential, nor is it privileged, and it does not create an attorney-client relationship. Please consult with an attorney for advice specific to the facts of your case.

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Answered on 1/11/04, 10:51 am


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