Reference no: EM13763427
On June 1, 2014, Newman, owner of H & H Bagels, met with Abe Farkas in his office to discuss the possibility of Farkas working at H & H. Newman told Farkas that if Farkas accepted a job offer, Newman would guarantee him three years of employment so long as he performed competently as a bagel baker. Five other H & H employees were present to hear this conversation. Farkas replied that if Newman gave him a letter detailing his duties, he would accept a position at H & H. On June 2, 2014, Newman sent the following letter to Farkas:
Dear Mr. Farkas:
H & H offers you the position as associate bagel baker at a salary of $30,000 per year. Aside from a one week unpaid vacation, you will receive no other benefits. Please call to confirm your decision. You will become a proud member of the H & H team.
Sincerely,
Newman (signature) Farkas called Newman on June 7, 2014, and said he wanted to begin working at H & H Farkas began work there on June 14, 2014.
On July 7, 2014, Farkas baked an incredible 700 bagels in 20 minutes, much to the amazement of Newman and other employees. In response, Newman said to Farkas,
"That's awesome! I'll give you a bonus of $50 in your next paycheck for doing that. And if you can bake another batch of 700 bagels within 20 minutes within the next two years, I'll give you a bonus of $100." Farkas, expecting to see the extra $50 in his next paycheck, purchased a Commando 8 air conditioner for $50 at Leo's store. Leo has a policy of goods being non--returnable. On July 10, 2014, Farkas baked 900 bagels in twenty minutes.
OnSeptember 5, 2014, Fakas asked Newman to pay him both bonuses. Newman refused, and when Farkas again in a quiet manner asked for the bonuses, Newman terminated Farkas from employment at H & H. Newman has not paid Farkas either bonus.
Farkas seeks your advice. Provide honest advice to Farkas concerning the issues below on his chances of success by finding and discussing all legal issues:
1. The enforceability of the promise of the $50 bonus.
2. The enforceability of the $100 bonus.
3. Farkas' rights concerning his employment termination.