Defendant employer appealed an order from the Municipal Court for the Pasadena Judicial District of Los Angeles County (California), where judgment was entered in plaintiff’s favor on plaintiff’s complaint for breach of contract.
Overview
Plaintiff employee brought suit against defendant Norway salmon employer for breach of contract as a result of the reduction of plaintiff’s pay rate. The trial court entered judgment in plaintiff’s favor and defendant appealed the order. The court reversed the judgment. The court held that plaintiff was an at-will employee whose employment could have been terminated at any time upon proper notice. The court held that plaintiff had no expectation of continuous employment with defendant because continuous employment was not a benefit of the agreement where the employment relationship was strictly at will. In reversing the judgment, the court stated that plaintiff’s contract was effectively terminated when defendant changed plaintiff’s pay rate. The court concluded that a new at-will contract formed when plaintiff accepted the terms of the new pay rate. The court found that there was an acceptance of the new pay rate because plaintiff continued to work under the modified terms of the at-will contract.
Outcome
The appeals court reversed the judgment entered in plaintiff employee’s favor because plaintiff was an at-will employee and when defendant employer changed the terms of his pay rate the old contract was terminated and a new contract was formed. The court found that plaintiff accepted the new contract by his continuous employment with defendant.