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socrateaser, Lawyer
Category: California Employment Law
Satisfied Customers: 39028
Experience:  Retired (mostly)
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I have been leading a RMA (Return Material Authorization) team

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I have been leading a RMA (Return Material Authorization) team of an International Maufacturing Company more than six years.
Every year, the team collects all RMA material from her Northern American customers and turns around to make the RMA material to finish goods more than one million dollars value.
Also we got customers' rework P.O. in dollar amount of $200,000 and above.
We are proved as a valuable team
Recently rumor spreads around that the team will be dismissed and move back to China.
So far I am holding many P.O.s at value $400,000 pending invoicing. In such case, if layout happens to the team without a good package or with only two months pay, can I hold these P.O.s till I get 1/3 or more from the total amount by negotiation with the top management? It may not be time yet, but I need to know how to handle it for my right and protect my self and the team legally. Thank you for your input and advice.

"Every employee owes his or her employer duties of undivided care and loyalty " Janken v. GM Hughes Electronics, 46 Cal. App. 4th 55.

Breach of the duty of care and loyalty can carry with it liability for damages to the employer. By your holding back valuable assets belonging to your employer, you would breach your duty and subject yourself to liability for the damages caused.

Additionally, and more importantly, subjecting the employer to the "lever" of "future harm," by holding back purchase orders which are already the employer's property, is extortion. Overhill Farms, Inc. v. Lopez, 190 Cal. App. 4th 1248 (Cal. App. 4th Dist. 2010); Penal Code 518.

In short, you are about to get yourself into a "world of hurt," if you continue on your present course.

Hope this helps.

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