DALLAS (CN) – An employee did not tacitly agree to a reduced salary by continuing to work for that salary, the Texas Courts of Appeal ruled.
Tracy Dieterich sued his former employer, Arthur J. Gallagher & Co., and won judgment of back pay, vacation pay, attorney’s fees, and other costs.
When the company informed Dieterich that it was letting him go, it reduced his salary. Dieterich complained but continued to work until his 6-month contract expired.
Judge Lang-Miers agreed with Dieterich that he did not consent to the modification of his contract.
“Dieterich was not an at-will employee,” the judge wrote, “The parties had a contract, and whether the companies and Dieterich modified their agreement depends on their intent. And intent is a question of fact, not law.”