Unpaid Wages Legal Dispute

They cited some case law

Let me start at top with the emails

Dear USMR Legal Team, I am writing to formally assert my rights and address the significant deviations introduced in the draft settlement agreement sent on August 20th. The material changes in your draft not only significantly alter the terms previously discussed but also undermine the integrity of the negotiation process. These actions have serious implications for the enforceability of the proposed agreement and fully justify my rejection of the current terms. Given the significant and material changes made to the draft agreement, it is clear that the current proposal is not enforceable. For an agreement to be binding, there must be mutual assent on all material terms. The deviations introduced by USMR indicate that there was never a meeting of the minds on these key issues, and therefore, no binding agreement has been reached. Furthermore, the inconsistent behavior exhibited by USMR—claiming that an agreement exists while simultaneously introducing new terms—demonstrates bad faith. This undermines the enforceability of any claimed agreement and fully justifies my decision to reject the current terms and demand a lump sum payment. Discretionary Clawbacks: In our prior discussions, there was no mention of any clause that would allow USMR to unilaterally halt payments. The expectation was that the agreed-upon compensation would be secure and guaranteed. The introduction of a clause allowing USMR to stop payments at its sole discretion if it determines a breach is a significant deviation from what was discussed. This clause effectively gives USMR total control over whether I receive what is owed, nullifying any sense of security that a settlement is meant to provide. This change fundamentally alters the agreement's enforceability. By reserving the right to unilaterally stop payments, USMR is attempting to create a situation where it can escape its obligations with little to no consequence. This is not a settlement; it is an attempt to manipulate the terms to your client’s advantage. This clause alone justifies my demand for a lump sum payment, as it is the only way to ensure that the agreed-upon amount is actually received without undue risk. Escrow Handling: The use of an escrow account was expected to ensure that the settlement funds were securely held and disbursed in a neutral and fair manner. This was a key component in ensuring trust in the settlement process. The proposal to bypass escrow for initial payments, allowing USMR to handle these directly, is a significant and unacceptable deviation. This change erodes the security that escrow is supposed to provide, placing me at increased financial risk. By altering the payment mechanism, USMR is attempting to retain control over the funds and potentially delay or avoid full payment. This change was never discussed or agreed upon and further justifies my insistence on a lump sum payment. The removal of escrow undermines the agreement’s fairness and raises serious doubts about USMR’s intentions to honor its commitments. Extended Restrictive Covenants: Reasonable restrictive covenants were discussed, but they were to be limited in scope and duration, ensuring that I could continue my career without undue restrictions. The draft agreement extends these restrictive covenants through December *, far beyond what was discussed or could be considered reasonable. This extension is overly restrictive and punitive, effectively preventing me from pursuing my career for an unreasonably long period. Such a change was never agreed upon and represents another attempt to impose unfair terms. The extended duration of these covenants is unacceptable and highlights the one-sided nature of the proposed agreement. I want to acknowledge the offer of $*,*, which USMR has proposed to be split over * payments, subject to discontinuation at your client’s discretion. While I recognize that this amount is closely aligned with the wages I was pursuing as an employee in good faith, the circumstances surrounding this matter have evolved significantly, and that offer is no longer acceptable. Since my initial efforts to address and resolve the issue of unpaid wages, USMR has engaged in a series of actions that have compounded the harm I have experienced. My employment was terminated immediately after I sought to resolve these wage issues—a termination that was communicated on the same email thread where I initially raised these concerns. This clearly indicates a retaliatory response to my legitimate attempts to secure the compensation I was owed. Moreover, the email documenting this termination was later redacted in the first round of evidence submitted by USMR. However, I have retained the original, unredacted email, which clearly demonstrates your client’s retaliatory intent. In the same round of evidence, USMR also included a commission chart that falsified my performance and my team members. Along with the attempted enforcement of unfavorable, non-agreed-upon terms, this shows a consistent pattern of bad faith and solidifies my belief that USMR will not settle in good faith unless compelled to do so. I am now past the point of irreparable financial harm. The damage has been done, and the very outcome I sought to avoid by making considerable concessions has occurred. Given this reality, the terms I am willing to accept have fundamentally changed. Final Demand: Given the irreparable financial harm caused by USMR’s actions, I now demand a lump sum payment of $*,*. This figure does not reflect the full amount of my claims but rather what I am willing to settle for. To provide USMR with appropriate time to pay these funds, I require a good faith payment of $*,* no later than Wednesday, September *, *. Acknowledgment of your client’s willingness to pay this amount is required by Tuesday, September *, *. This payment can be deducted from the overall lump sum. However, if USMR fails to comply with this demand, I will have no choice but to escalate the matter by engaging further with the EEOC, Department of Labor, and CFTC, and to pursue all potential legal claims, including those related to retaliation, discrimination, wage and hour violations, and record-keeping. Given USMR’s actions throughout these settlement talks and as previously mentioned, I cannot rely on USMR to act appropriately without the intervention of the above-mentioned agencies. However, if the payment of $*,* is made by the above date, I will disengage with these agencies and halt all current actions in the spirit of actually settling. I must also add that, due to how these discussions have transpired, if progress or acceptance of these terms has not been received by me on or before September *, *, I will re-engage with the agencies mentioned above and any others that are applicable. I trust that you will advise your client appropriately, as this letter represents my final position. I look forward to your prompt response and hope that we can resolve this matter in a manner that is fair, just, and legally sound. Best regards, **** Heinz

r. Heinz, As we told your counsel on August *, USMR is not interested in renegotiating the terms of its binding settlement agreement that it reached with you, through counsel, via emails on August * and *. Those emails are attached for your convenience. Your stated intention to nonetheless proceed with claims against USMR therefore breaches your binding settlement with USMR. USMR reserves all rights to enforce that agreement and seek to recover all damages, attorneys’ fees, and costs incurred due to your breach. If you believe the formal draft settlement document does not accurately reflect the parties’ agreement, please feel free to suggest any edits you believe necessary to effect that agreement. Even without that formal settlement document, though, the parties already have a binding settlement.

Dear USMR Legal Team, I am writing to inform you that I have initiated a formal complaint with the Department of Labor regarding USMR's failure to properly compensate me for wages owed, as well as its improper record-keeping practices. I have already submitted detailed evidence from my time as an employee, including unpaid wages, unauthorized deductions, and inconsistencies in payroll records. In addition, I have provided evidence of retaliatory actions taken by USMR after I raised concerns about the unpaid wages and other unethical practices. This includes the abrupt termination of my employment, which was a direct result of my efforts to address these violations. Furthermore, the redaction of key evidence and falsification of team performance and member records further demonstrate bad faith and improper record-keeping by USMR. These actions significantly increase the liability USMR now faces. This step was necessary due to USMR’s continued refusal to engage in good faith. Please note that my timeline remains unchanged. However, I remain open to discussing a fair settlement that resolves this matter swiftly and equitably, taking into account the increased liability USMR faces due to its actions. Best regards, **** Heinz

Mr. Heinz, That conduct breaches your binding settlement agreement with USMR and negates any remaining obligation USMR had to pay you under that agreement. USMR reserves all rights to recover any resulting damages, attorneys’ fees, and costs incurred due to your breach.

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