Andrew is employed as a chief financial officer of EasyMoney in New York City, for a salary of $200,000 per year on a three-year contract. His employer terminates Andrew with two years left on the contract. Andrew accepts employment as a financial analyst at a different firm that pays $150,000 per year. Which of the following hold true in this scenario?
A) Andrew cannot take any legal action against his prior employer after accepting another job.
B) Andrew's prior employer must pay Andrew two years' worth of his previous salary.
C) Andrew can only sue to receive nominal damages.
D) Andrew can sue his prior employer and recover $100,000.

Question

Quizplus · Accepted Answer

In this scenario, Andrew's prior employer has breached the employment contract by terminating his employment prematurely. As a result, Andrew may sue his prior employer to recover the salary for the remaining two years of the contract. The amount of the damages would be the difference between the salary he would have earned under the contract and the salary he is currently earning in his new job. Therefore, Andrew can sue his prior employer and recover $100,000 ($200,000 - $150,000).

Andrew Is Employed as a Chief Financial Officer of EasyMoney