The experience had been the ride of a lifetime, but she had little to show for it in the way of savings. At least she had that fat severance check coming, as well as commissions on all the horses that sold. And then comes the letter from the Banker’s lawyer, de-
manding repayment of the “loans” Bobbie had “given” her over the years. The lawyer claimed that the loans totaled over
making gifts and loans is not uncommon. Employees are led to believe that they are “more than” mere employees, but rather family members who will be afforded the ben- efits generally associated with a lifetime commitment. Who doesn’t want to believe that they are valued and loved and will be cared for the rest of their lives? It is an attractive fic- tion and an employee does not need to be particularly gull- ible to believe it. This tale illustrates how important it is for a paid employee
T
to maintain that “bright line” between employment and friendship with an employer. It may be difficult to say “no” to an employer’s generosity, but it is equally (if not more) difficult to accurately document the terms and conditions attached to payments made to the employee that are not “wages.” It may be “just money” to the employer, but any money
received by an employee from the employer should be docu- mented as income or wages. Depending on how Bobbie’s “loans” to Judy were docu-
mented, she may well be able to avoid repayment. Likewise, depending on how Bobbie’s offer of a severance payment was documented, it may be enforceable. But, more likely than not, Bobbie’s lawyer has figured out that Judy is not going to hire a lawyer to go after the severance payment if he asserts that her obligation to repay the loans will result in a zero-net gain. If he saves Bobbie money then he has done his job. But in any case, Judy should consult with a lawyer who spe-
cializes in employment law. There are many laws that protect employees in many ways, and Bobbie’s behavior gives rise to the possibility that he has engaged in some prohibited employ- ment practices that entitle Judy to some kind of relief of which she cannot independently conceive. In any case, it is unlikely that Bobbie will be able to lawfully collect any money from Judy, and consulting with a lawyer may at the very least give her some peace of mind that will allow her to move forward without the dark cloud of debt hanging over her head. If noth-
Warmbloods Today 69
his scenario may seem far-fetched, but in fact it is not. The strategy of engendering employee loyalty through
$500,000 and that the promised severance check and commis- sions would be applied to that balance. But could she please contact him about a re-payment plan? And how does she plan to pay off the line of credit at Bobbie’s bank? Because now that she is no longer Bobbie’s employee, the credit line will be closed. What is Judy to do?
See below for the answer
ing else, she should consult with a lawyer prior to voluntarily making any “loan repayments” to Bobby.
Krysia Carmel Nelson is a Virginia attorney who is a nationally-recognized expert in equine law. She represents horse own- ers, trainers, riders, breeders, equestrian facilities, farms, clubs and associations across all nationally and internationally recognized disciplines. She currently rides and competes her Hanoverian Affirmed on Appeal in the amateur hunters. She can be reached at
eqlaw@aol.com.
© The Book LLC 2011
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