I was asked to join a company about 4 months ago and leave my previous job of 15 years. The pay was quite a bit better than what I was being paid at my previous job. I signed an employment agreeing that stating my pay could be increased or decreased at anytime for economic reasons. Four months into my new job I was laid off and told they have over $100,000 in debt (but they can get their hands on money if they really wanted to from their family). I did ask the employer before coming to work if they were financially stable and they advised they were. My first week on the job I found an invoice that was 4 months old for $10,000 that had not been paid. A few weeks later I was receiving calls for collections. They purchased a second home in Colorado shortly before all the collection calls starting coming as well (how they got financing I do not know). The owner of the company does have family money but he would have to advise his father of the situation they have gotten into. The company is an S corporation and all their house payments, car payments, etc. are paid by the company, including their children's cars. I also live in an at will state. Do I have any recourse for a suit?

HI,
Unfortunately, taking on a new job does have risks. No, I don't think there is anything you can do about the layoff.
I was laid off from a 23 yrs job, in 2002, along with 6 others over 55 yrs of age; reason given was: "permanent workforce reduction".
I do wish you the best in finding another job, and possibly, your old emplorer might hire you back?
Best of luck.

Okay thank you. I was just hoping that since I found out they had debt before they hired me the employment letter was written under some type of false pretense. But, I guess not!

No, we are responsible for checking on companies prior to changing jobs.

Ones idea of being sound, may not be anther person, and of course one quarter in business can make a lot of changes. Many large coporatins, quickly fire management and engineer people with a bad quarter report

We all take risks when we change jobs

As others have said, you don't have any options.

When you take a new job, it's a risk.

I assume you got some sort of serverance when they termintaed you (or perhaps actual working time notice).

Anyway,
If you don't have to sign that salary changing agreement, then don't. In your case, you didn't have to sign it since you did have a job.

Just a side note, unless you have a specific employment contract, an employor can change your pay no matter what the condition of the company. For example the company I am working for has changed the pay scale 4 times in the last 3 years, commission to salary, to salary and commission to some. Normally you get a lot of turn over but a company can just come in and cut pay if they want to.