When negotiating with a potential employee, there are several details to get solidified prior to the start of the employee relationship: wages, benefits, duties, hours, start date, etc. However, with the new working environment in which we operate, work location and the opportunity for remote work have become increasingly common terms and conditions that need to be ironed out before either making or accepting an offer of employment.
In the case of Decker v. HSBC Bank USA, N.A., Decker was working for the defendant at its London, U.K. location when an opportunity for a job in New York became available. Decker applied for the position, but informed the defendant he wanted to live and work from Minnesota. When HSBC found out about this request, they relocated the position from New York to Chicago, and stated that Decker could work remotely from Minnesota and partially out of the Chicago office. Decker believed he would only be needed in the Chicago office on an as-needed basis. He accepted HSBC’s offer; however the offer letter did not identify the position’s physical location or discuss the portion of time he would be required to work out of Chicago (it’s possible they believed he was joking about wanting to live in Minnesota).
Decker moved with his family to Minnesota and began working remotely. The day after he started work he was informed he would be required to work out of the HSBC Chicago office 50% of the time. In early August 2021, Decker was then informed he could not work from his home in Minnesota at all, and would be required to live in Illinois for 100% of his employment. When Decker responded negatively to this directive, HSBC treated it as his resignation. After he was terminated, he sued for breach of contract for failure to pay severance and promissory estoppel, along with other claims. HSBC moved to dismiss on the breach of contract and promissory estoppel claims. After Decker waived his breach of contract claim, the Eighth Circuit was left to respond to the motion to dismiss on promissory estoppel.
As we’ve said before, the burden to survive a motion to dismiss is not a high one – the complaint only must contain enough facts to state a claim to relief that is plausible on its face, and facts alleged in the complaint must be taken as true. HSBC claimed that Minnesota courts only recognize two types of promissory estoppel claims in employment: at-will employees whose future employers renege on offers of employment prior to work, and definite-term employees whose employers terminate them before the expiration of their terms. The court, however, found that Minnesota has on multiple occasions recognized alternative promissory estoppel claims where an employer’s promises would “induce action or forbearance” by the employee.
In this case, the court found that the alleged promise that Decker would be able to “work remotely from Minnesota for at least a portion of the time he performed his HSBC role” was clear and definite enough to create an obligation that they continue to allow him to work from Minnesota during his employment. The court found that HSBC allegedly broke that promise after Decker moved his family to Minnesota. As a result, the motion to dismiss was denied.
This was only a motion to dismiss, but now the parties move to the summary judgment/trial portion of the litigation process, which can get expensive. When making an offer to an employee, it is essential that all important terms and conditions be written out in an offer letter to the employee (it’s the law in Minnesota). But you also need to ensure that if there are further communications about anything involving the work location, duties, or duration of employment, those communications are documented so all parties are aware of their obligations to employees. If employee requests for variations in work assignment or location are denied, those denials must be documented as well.
If you, or your organization, need assistance with the hiring, performance management, or termination of your employees, contact Wiley Reber Law, for legal advice that works.