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Here's a hypothetical situation:

  1. Alice is the sole software engineer at Bob's company.
  2. Bob notices a software bug and asks Alice to fix it. He tells her that the bug is costing the company $100,000/day.
  3. Alice realizes that it would only take her minutes to fix the bug, but that it would take any other engineer weeks to understand the company's systems enough to fix it.
  4. Alice asks Bob for a $1 million bonus before she solves the bug, and threatens to quit unless she's given the bonus.

Alice didn't intentionally cause the bug, she didn't intentionally engineer the systems in a convoluted way, and she didn't plan any of this ahead of time; she only came up with the idea once she was asked to solve the bug.

Would this be legal? I'm interested in US law, but didn't have a specific jurisdiction in mind.

Toby Speight
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user71827
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6 Answers6

36

If Alice deliberately created the bug, with the intent of asking for this exorbitant sum to fix it, I think that would be extortion, like a protection racket ("That's a nice database you have there, sure would be a shame if something happened to it"). This type of thing isn't completely far-fetched; when I was in high school I did some work for my father's company, and their programmer at the time told me that when he was a consultant he would leave unfinished code in his projects, so the clients would have to hire him again to complete them.

But if Alice didn't deliberately create the situation, I think she can ask for whatever she wants. There are minimum-wage laws, but I've never heard of maximum-wage laws that limit what the employee can ask for in a negotiation. If your expertise is worth a million dollars, why shouldn't you be able to ask for it?

Of course, if you're already under a contract that requires you to keep working at your current salary until the end of the contract period, threatening to quit would be in violation of the contract. But in the US most employees are at-will -- they can quit or be fired at practically any time, so long as they're not fired in violation of anti-discrimination laws.

You're generally still required to provide a reasonable notice period (2 weeks is typical in the US), during which you should continue to do your job. But I think the only consequence of not doing your job during that period would be that they'd fire you for cause, and probably not pay you for that period of work. Which is effectively the same as quitting on the spot.

Of course, the hypothetical you describe is very far-fetched. It's rare that a single employee is so critical that they can ask for many times their normal salary. Any business that gets themselves into a situation where one person is indispensible is poorly run to begin with. No one, even the CEO, should be so crucial.

And it's also unlikely that a problem that costs such huge amounts pops up suddenly and there's only one person qualified to fix it. The employee who thinks they're the only one who can save the company millions of dollars has extreme hubris.

But if they can convince the employer of this, more power to them.

Barmar
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15

Alice cannot quit on the spot (with some exceptions related to health and safety which do not apply here). There is a notice period to do so (the legal maximum and most common is three months), during which she must still follow her employer’s instructions, as long as they are legal and fall within her job duties. ("Her job duties" are outlined in her fiche de poste, a legal document that forms part of her work contract and cannot be changed unilaterally.) What happens next depends on how she breaks the law.

If she physically leaves the company never to work for them again (with or without invoking - wrongly - one of the "health and safety" exceptions as a justification), her employer may ask for damages under article 1237-2 of the labor code ("abusive severance of work relationship at the employee’s initiative").

Outside this cause of action, things are more difficult. What if she stays on the premises, performs other work duties, and otherwise does her job except fixing the bug? Suing Alice for damages for actions done (or not done) within her job duties requires that Bob first fires her for heavy fault (see e.g. Cour de cassation, Chambre sociale, 7 mai 2024, 22-23.180, §5-10).

Firing under French law is (almost) always for-cause, and falls under three categories of gravity: simple, grave and heavy fault. The latter category requires that (1) the employee acts in such an egregious manner as to "make impossible to keep the employee within the company for any duration of time", and (2) the actions reveal an intention to harm the company. The typical examples are disgruntled employees deleting documents, vandalizing company property, etc.

It is very unclear to me that Bob could successfully prove that Alice’s behavior meets the heavy fault standard. She is not taking overt actions to destroy company property, and she might not have communicated her blackmail explicitly. Alice failing to fix a simple bug due to incompetence is at most simple fault; Alice asking a bonus is not grounds for termination.

Bob also needs to act promptly. If Bob decides not to fire Alice immediately for some reason, then has a later change of mind, it becomes difficult to argue that her actions meet the first prong of the heavy fault standard ("actions so egregious that she cannot be kept as an employee for any duration of time"). Bob could potentially show that he did not understand the gravity of Alice’s action at the time (maybe senior engineer Carol, who eventually fixed the bug, comes up weeks later with irrefutable proof of points 2 and 3), but that muddies the waters.

Assuming Alice is liable, then she is on the hook both for recovery steps (say, if the company needs to hire an external consultant on an emergency fee to fix the bug), and money lost due to the bug past the point she could have fixed it. Proving the exact timeline might be a tricky factual question, of course.

UJM
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That would be a breach of the employment contract

An employee must follow the lawful and reasonable directions of their employer. If an employee attempted such coercion, they could be terminated for cause, and potentially be liable for any damage flowing from the breach - the cost of the other programmers, for example.

It’s probably not commercially viable to bring such a suit, but it is legally viable.

Dale M
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In the US, frequently there is no express employment contract, and in many states an employee is an at-will employee with few rights under an implied employment contract. Regardless of the facts (Alice didn't create the bug as part of an extortion scheme, ete.) many employers would simply assume that she did, which could be considered reasonable, and Alice would be fired for making such a demand.

If there is an express employment contract, the employer would be justified in simply saying, "No, do your job."

If it's an emergency, the employer might make a counter-offer of some reasonable sum, say, $5,000, and keep in mind that Alice's contract will not be renewed, or fire her after she does the work.

Jen
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Wastrel
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Contracts notwithstanding, I don't see how this is not legal. Most engineers (in the US) do not have a contract. Most states are at will employment so either party can terminate without cause. Alice can certainly walk into her boss's office and say "I want X or I will quit", just as the boss can say "Alice I need to you to take a pay cut to remain employed" or even "Alice you are fired".

Even if a different employee, Trudy, actually caused the bug with the intent to blackmail, I feel that it would be difficult to prove in a court of law. Checking in code, with a bug, is commonplace, and if Trudy was smart she would follow all the company processes to make it look like an accident.

So how is this prevented from happening in the real world? First the company could back out the change that caused this bug in the first place, eliminating the business loss. Second, it is rare to have someone in such a situation. Most of the time there is a back up that could fill in, and take over for Alice in a reasonable amount of time. Third, is the ethics of the developer.

Most of the time developers in Alice's situation are treated very well by the company and a short term gain is not in Alice's best interest.

Also even if there was a contract what clause could compel an employee to work for less than they desire? While there exists some exceptions to this, for most in this situation that would not be the case.

So, legal, for sure.

Pete B.
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illegal.

As long as "fixing bugs" is part of Alice's job description in the contract, demanding extra pay for that is illegal: it is a "Dienstanweisung" and as long as it is not for extra hours and a legal demand and within the scope of the contract, it has to be obeyed under the conditions of the contract. See § 315 BGB and § 106 GewO.

Further, quitting on the spot is not an option either - the contract and law have firing and quitting protections in both ways.

Trish
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