JANE TRICHE MILAZZO, District Judge.
Before the Court is Defendant's Partial Motion for Judgment on the Pleadings. Defendant's Motion is DENIED for the reasons stated below.
According to Plaintiff Gustavo Machado's Complaint, Defendant TEKsystems, Inc., an IT staffing and recruiting company, recruited him away from his job as an Exchange Engineer with Microsoft in Texas to work for its client, Ochsner Healthcare Foundation ("Ochsner"), in New Orleans. Plaintiff alleges that in doing so, TEKsystems guaranteed him that he would work as an employee of TEKsystems for the first five months and would thereafter become a permanent employee of Ochsner ("the Oral Contract"). In reliance on these representations, Plaintiff quit his job at Microsoft and moved his family to New Orleans. On Plaintiff's second day of work, the parties signed a written at-will, indefinite-term contract employing Plaintiff as an Exchange Engineer ("the Written Contract").
Instead of working as an Exchange Engineer as Defendant had promised both orally and in writing, Plaintiff began work at Ochsner in an Active Directory Role. Because he did not have the skill set to perform this job, Ochsner released Plaintiff after just four weeks of work. TEKsystems thereafter terminated Plaintiff's employment. Plaintiff alleges that Defendant breached the employment contract by firing him prior to the five-month term and failing to pay him the amount remaining on the contract. In addition, he brings claims of detrimental reliance and negligent placement for Defendant's failure to place him in a job for which he was qualified. Defendant has filed a Motion for Judgment on the Pleadings on the grounds that Plaintiff has not asserted viable claims for (1) breach of contract; (2) detrimental reliance; (3) negligence in an employment setting; and (4) future wages.
Rule 12(c) provides that a party may move for judgment on the pleadings, after pleadings are closed but early enough not to delay trial.
Defendant requests judgment on the pleadings on Plaintiff's claims for (1) breach of contract; (2) detrimental reliance; (3) negligent placement; and (4) future wages. The Court will address each claim in turn.
There are two types of employment contracts under Louisiana law: a definite term contract and a terminable at-will contract.
Considering the facts in the light most favorable to Plaintiff, the issue thus becomes whether the parties intended for the Written Contract to modify their previous Oral Contract.
Accordingly, the Court must accept as true Plaintiff's allegations that the Written Contract did not modify the Oral Contract. Indeed, Plaintiff claims that on the same day that he signed the Written Contract, a representative of TEKsystems prepared the Letter, stating that Plaintiff would "be employed for 5 months with TEKsystems then transition to permanent employment to Ochsner."
According to the Louisiana Supreme Court and Louisiana Civil Code article 1967,
Defendant claims that Plaintiff cannot maintain a claim for detrimental reliance because the Letter, which purports to guarantee him a five-month term of employment, was written after he had already moved to New Orleans and began work at TEKsystems. Therefore, Defendant argues, Plaintiff could not have relied on the Letter to his detriment, and his reliance is unreasonable because of the Written Contract. Plaintiff rebuts that his reliance was not on the Letter but on oral statements made by Defendant's representatives prior to his move to New Orleans.
This Court agrees. Plaintiff's Complaint does not allege that he relied on the Letter. Instead, it clearly states that he and his wife quit their jobs in Texas and moved to New Orleans in reliance on TEKsystems's representations that it would employ him for five months at a designated hourly wage and then transition him to permanent employment at Oschner at a salary of $80,000. Plaintiff alleges that after his move, TEKsystem reneged on its promise and fired him after just four weeks. These facts, as alleged, satisfy every element required to maintain a claim for detrimental reliance. Indeed, even Defendant's Reply Memorandum concedes that its oral promises may support a detrimental reliance claim.
Plaintiff also asserts a claim for tort damages arising out of Defendant's negligence in placing him in a position different than that for which he had been recruited. Plaintiff alleges that he had been employed as an Exchange Engineer at Microsoft and was recruited by Defendant to fill the same position at Oschner. When he arrived in New Orleans, however, he was employed at Oschner in a different role for which he was not qualified. Plaintiff alleges that this placement was negligent and deprived him of the potential for permanent employment with Oschner.
In Defendant's Motion, it argues first that to the extent Plaintiff alleges some physical injury, his claim is barred by the worker's compensation statute. This Court is not convinced by this argument. The only physical injuries claimed in Plaintiff's Complaint are emotional distress, anxiety, and anguish. Worker's Compensation law does not bar claims in tort for mental injury caused by work-related mental stress "unless the mental injury was the result of a sudden, unexpected, and extraordinary stress related to the employment and is demonstrated by clear and convincing evidence."
Next, Defendant argues that no such claim for negligent placement by an employee against his employer exists in Louisiana law. Defendant is correct that typically negligent hiring/placement claims are brought against the employer by a third party who has been injured by an employee.
Plaintiff's Complaint plausibly alleges a claim of negligence because it states that Defendant, an IT staffing company, negligently placed him in a job for which he was not qualified, which "deprived him of the potential of permanent employment with Oschner."
In his Complaint, Plaintiff claims that he is entitled to compensation for the remainder of the five-month term of employment that he was promised in the Oral Contract. In Defendant's Motion for Judgment on the Pleadings, it argues that because Plaintiff was an at-will employee, he is not entitled to future wages.
Louisiana Civil Code article 2749 states that:
Accordingly, Louisiana courts have stated that "[a]s a prerequisite for claiming unpaid wages for work that would have been performed in the future, an employee must show that he has been hired for a definite time period."
For the foregoing reasons, Defendant's Motion is DENIED.