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I was fired with cause for collecting and using hotel reward points. A practice that numerous employees in the company do. There is no written policy against this and there was no progressive discipline. I was also told that I was allowed to do this from my former boss however nothing in writing so it is hearsay. I was in management and employed there for almost 2 years. I know for a fact other management does this as well as field staff however I am the only one who has been terminated for it. They are threatening to sue me if I do not repay $1000 and points. Is this allowed or should I be suing them?

If other employees do this as well then they cannot single you out and terminate you for cause. Please contact us at the number below for a consultation with a lawyer to discuss your entitlements and situation.
The Lawyers at Samfiru Tumarkin LLP
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