Brooklyn, NY asked in Civil Rights, Contracts and Employment Law for New York

Q: Settled a breach of employment contract. no payment till after I dismiss. Should i trust that? Shouldn’t i be paid firs?

I was due a 10k sign on bonus after a year of working with this company. They agreed to pay it but never did so I quit, they then used that as a excuse to not pay me. Now we’ve settled the lawsuit out of court & they want me to dismiss first then they would pay me. Shouldn’t I get paid first? Why would I dismiss if they haven’t followed through with their part of the agreement. Is this right?

3 Lawyer Answers
Michael David Siegel
Michael David Siegel
Answered
  • New York, NY
  • Licensed in New York

A: Typically it would be the way you say. Depends on what the dismissal would say.

Lisa I. Fried-Grodin
Lisa I. Fried-Grodin
Answered
  • Fairfield, NJ
  • Licensed in New York

A: I don't ever file a dismissal of an employment law claim brought by my client before the settlement is paid. The settlement agreement should have language discussing a procedure for you agreeing to withdraw within a certain amount of time after getting paid. If you did not have a lawyer when you negotiated this deal, it could be worthwhile for you to hire one to help you handle this aspect of the settlement agreement.

David H. Relkin
David H. Relkin
Answered
  • Manhasset, NY
  • Licensed in New York

A: This is a common request by a defendant. Unless there is an agreement pursuant to which they agree to pay, no, you should not dismiss the action first even if it is without prejudice. I also prefer an escrow by which the money is held by counsel and an agreement provides for the dismissal and filing of a Stipulation of Discontinuance and simultaneous payment.

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