Employees in Connecticut have relatively few protections from being fired from their jobs. However, a recent court decision could potentially expand certain employees’ rights when an employer attempts to impose a fee-sharing arrangement.
Connecticut is an at-will employment state. This means that generally, an employer can fire an employee for most any reason or for no reason at all. However, there are exceptions to this rule. One exception is the Sheets doctrine, which prohibits employers from firing an employee when the action would offend an important public policy. For example, a company cannot fire a bookkeeper or accountant who refuses to prepare a false income tax return. The public policy of honest business accounting warrants protecting those employees who might be pressured into acting dishonestly.
In Dunn vs Northeast Helicopters Flight Services, the Connecticut Supreme Court case expanded the applicability of the Sheets exception to a state statute prohibiting employee wage give-backs and employment fees. This little-known law was designed to prevent employers from extracting money from people as a condition of employment.The statute provides, among other things, that an employer is not entitled to any refund of wages, fees or other sums of money from an employee upon the representation or understanding that such refund is necessary to obtain or continue in employment.
Tim Dunn was the chief pilot at Northeast Helicopters, which provided helicopter flight training for students seeking a pilot’s license from the Federal Aviation Administration (FAA). Dunn and the company owner discussed — but never executed — an arrangement by which the company would assist Dunn in obtaining credentials to become an FAA helicopter pilot examiner and Dunn would then conduct FAA flight examinations of students at Northeast Helicopters and split the examination fees with the company. However, Dunn completed the FAA examiner training without Northeast Helicopter’s help, to avoid having to split the fees with his employer. The company fired Dunn, who later sued for wrongful termination, claiming he was protected under the wage give-back statute.
In ruling for Dunn, the Supreme Court found the fee-splitting structure the parties discussed was not based on their existing employment arrangement. The FAA flight examination service would have been an expansion of the company’s business and would have created an additional source of income for Dunn not related to his original job. In a broad interpretation of the statute, the court did not require a direct connection between the payment of examination fees and Dunn’s employment. As such, this case may have a significant impact on the ability of employers to seek to share in the profits from their employees’ related but ancillary work.
Gesmonde, Pietrosimone & Sgrignari, L.L.C. in Hamden and East Haven practices employment law throughout Connecticut. If you believe you have suffered a wrongful termination or other employment rights violation, feel free to contact us online or call 203-745-0942 for an initial consultation.
Gesmonde, Pietrosimone & Sgrignari, L.L.C. is located in Hamden, CT and serves clients in and around North Haven, Hamden, Waterbury, Bethany, Milford, Wallingford, Prospect, Woodbridge, Northford, Madison, Beacon Falls, Branford, Cheshire, North Branford, East Haven, Naugatuck, Meriden, Ansonia and New Haven County.
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