Florida contract law recognizes oral contracts. That’s why it’s important to train all managers and supervisors to avoid promising employees any specific wage increases.
It’s also a good idea to spell out in the employee handbook exactly how raises are determined and handled. Specify that supervisors and managers have no authority to enter into oral contracts and that any oral promises they make are invalid.
Recent case: Robert Mosbach claimed that his immediate supervisor orally promised him he would receive a $10,000 raise on his next employment anniversary. The increase would have brought Mosbach on par with the compensation level of other employees in his position.
However, the supervisor was fired and Mosbach wound up getting a much smaller raise. He sued, alleging that his supervisor had created a contract when he promised Mosbach the $10,000 raise.
The court concluded that Florida contract and employment laws allow for oral employment agreements that include setting compensation. Therefore, a supervisor’s promise of a substantial raise may be binding on the company. (Onesource Facility Services v. Mosbach, et al., No. 2:05-CV-525, MD FL, 2007)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/2864/train-your-managers-make-no-promises-about-wages-or-raises "