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In Vermont, no liability for opining on employee's future pay or promotion trajectory

May 2021 employment law letter
Authors: 
Kendall Hoechst, Dinse P.C.

A Burlington associate attorney sued his law firm employer based on his belief he would make partner and earn a salary of $100,000 within five years. On all the issues, however, the Vermont Supreme Court recently ruled in the firm's favor. The decision provides comfort that general discussions of opinion about employees' future salaries and promotion opportunities won't generally create liability for an employer if the conditions discussed don't come to pass. Additionally, individual salaries and promotion considerations typically will be considered private concerns, which will prevent a former employee from asserting a wrongful discharge contrary to public policy claim if he is fired after threatening legal action in connection with the topics.

Facts

William Pettersen began working for Monaghan Safar Ducham PLLC in February 2016. Throughout his two-year employment, he believed he was underpaid and said so from time to time, including during the initial salary offer. He nevertheless signed a letter when he was hired (1) stating his employment was at will, (2) incorporating his starting salary as offered by the firm, and (3) noting the potential for bonuses based on his performance and the firm's revenues.

Pettersen told a partner he was uncomfortable with the salary and asked for information about the firm's typical partnership track. The partner asked him what he thought was a reasonable trajectory, and he said he thought becoming a partner and earning $100,000 annually after five years was reasonable if his good performance continued. In response, the partner said that trajectory was "reasonable."

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