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About Timmy Chou
Expertise
I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

 
   

You are here:  Experts > Business > Corporate Law > Arbitration/Mediation > Earnings owed and reimbursement

Arbitration/Mediation - Earnings owed and reimbursement


Expert: Timmy Chou - 1/7/2008

Question
I accepted a job out of town and in the offer letter they agreed to pay $2000 to reimburse me for moving expenses. There were no stipulations in the offer letter as to how long I would have to stay or if I didnt meet any certain requirements I wouldnt be reimbursed. I resigned after 2 months and to date 3 months later they will not return my calls, emails and my previous boss just keep brushing me off. Additionally, I was due a final paycheck for 10 days which should have been paid on January 1st. Again no response from the company and again my previous boss continues to brush me off. What recourse do I have? Is there any reason they wouldnt be obligated to reimburse my moving expenses?

Answer
Thank you for your question!

Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is far too typical and can be considered a "classic" workplace dispute presentation.  I am not a lawyer and cannot mediate this with you alone but I can respond to your question from my business consulting experience.

Note that this issue may have legal ramifications and you may wish to consult an attorney.

Please note that I was only notified today about your question, sorry about the delay.

You have discovered the most irritating problem with contracts -- there are no "contract police" making people keep promises.  It will be up to you to enforce the terms of any contract and that usually means filing a lawsuit.  

Unscrupulous companies know that it will cost you at least several thousand dollars to begin the process and bet you are not going to pay a lawyer more than you are seeking just for the fun of it.

Here is how to proceed.

You need to send a registered letter to the company.  It should say:

You have performed services and have not been paid and you are due moving expenses per the contract. This is due at separation and you demand this in full now.

If payment in full in not received by [date] (within a week), you will file a claim with your state's labor board and with the US Dept. of Labor.  

Be sure to note at the bottom of the letter you have copied

(cc)
Your State Labor Board
you local office US Dept of Labor
Your local Newspaper
the Better Business Bureau

It is important that the company understand that you are a serious threat to them and can cause them considerable grief.

If the company is convinced that: 1) you are not going away; 2) you are going to raise hell and tell everyone; and 3) it will likely cost more money to deal with you than it would to settle with you; than they will make a business decision and take care of you.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

   Confidential, no public record
   Limited exchange of documentation, information
   Quick, don't have to wait for a court date
   Arbitrators have expertise in the subject matter and are trained in conflict resolution
   Cheaper than litigation
   Preserves business relationships

Negatives of Arbitration

   It's a compromise, no 0 winner
   Complex arbitration can be costly
   If not satisfied, may litigate the arbitration procedure
   Poor results with an unskilled arbitrator
   Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

   Neutral mediator can objectively suggest alternatives not considered before
   Parties are directly engaged in negotiating the settlement
   Can be quicker than litigation
   Less costly than litigation
   Preserves business relationships
   85 of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

   may not reach a binding decision
   unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

   a clear winner and loser
   uses a prescribed set of procedures
   more predictable outcomes
   is final

Negatives of Litigation:

   waiting for court dates can do more harm
   usually more expensive than mediation and arbitration
   part of the public record


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