Wirehouse contract
6 RepliesJump to last post
Last Friday our entire group resigned from a large wirehosue and started a FiNet office. Today I receved a FedEx from my previous employer that stated I still had 2 months left on my trainee contract. Apparently I was 2.8 years into a 3 year contract when we left. The firm assigns a value of $15,000 to each year which they say is not prorated. They are asking for $15,000 since the contract was terminated 2 months before it offically ended.
Does anyone have any experince with this? Would a court agree that they should prorate the amount owned since it is so close to the end of contract? This particular firm is being sold to another large brokerage firm on May 31st. Does this change anything? Any advice would be much apprecaited!"Apparently".. It amazes me that people have no idea what they sign, or just play dumb on this forum to get some help..
Most firms will take a smaller amount if you offer it up. However sometimes they make exceptions when you go to other financial institutions that have deep pockets(or use to anyways).. I would call and offer $7500.. and see what they say..My experience says, be thankful that’s ALL they are asking for.
As for what a court would agree to, who knows. If the contract says nothing, expect the vagueness to work in their favor. If it doesn’t say anything about a proration, I’d imagine that they are correct…
As for the firm changing hands, that has absolutely no bearing at all.
‘Apparently’… I love it.
Secondly, congratulations on leaving the wire.
C
Apparently I was 2.8 years into a 3 year contract when we left. The firm assigns a value of $15,000 to each year which they say is not prorated. They are asking for $15,000 since the contract was terminated 2 months before it offically ended.
Was this a surprise to you? You really didn’t know this until you got the letter?
Depending on what state you’re in, it may not be as bad as you think. In many states, those types of contracts are not enforceable. Seek out a good attorney who specializes in financial services employment law, such as William Turner at <o:smarttag uri=“urn:schemas-microsoft-com:office:smarttags” name=“place”></o:smarttag><!–if !mso>< id=":38481807-CA0E-42D2-BF39-B33AF135CC4D" id=ieooui></>
<>
st1:*{behavior:url(#ieooui) }
& Fitzgerald in Los Angeles. It may end up costing you a little bit in lawyer’s fees.
I think you are now a business owner and should make a business decision. I myself would not spend $5,000 on attorney fees to fight a $15,000 issue. I would prorate the amount, offer a slightly smaller amount, say $1,500 and see what they say. It would be worth it in my opinion to do so and close that chapter of your career. You could also cry poor in an attempt to settle for short money. You have a contract, they have a reason to go after you to set a principal for others that threaten to leave and they probably have in house attorneys that are paid salaries to fight these things. I would also keep communications limited that you do in writing as they will possibly be used against you. My guess is with the firm being sold out, you have defenses to justify leaving that a court may or may not listen to, but you at least can make a case to the attorney going after you. If they balk and refuse to listen at least you tried. You also may find that due to the small amount, they may just be a pain in the ass with a few more letters and then just move on.