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I work for a company in Atlanta, GA. My employer has made me sign a
contract, which says, if I leave the company before the end of my term
i.e. two years, I am liable for the expenses that the company has
invested on me. The expenses include, my training on training courses,
my relocation expense and my visa transfer fee.
Is this even legal? Can some one help me?
Thnxs
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In article <lnafv0dqmr56veo8unfb509tdjs7q33u0o@4ax.com>,
<amanvohra@gmail.com> wrote:
I work for a company in Atlanta, GA. My employer has made me sign a
contract, which says, if I leave the company before the end of my term
i.e. two years, I am liable for the expenses that the company has
invested on me. The expenses include, my training on training courses,
my relocation expense and my visa transfer fee.
Is this even legal? Can some one help me?
Answers:
1) they didn't _force_ you to sign anything. you *voluntarily* chose to
enter into the aforementioned agreement. As an 'inducement' for them
to (a) provide training, (b) provide relocation expenses, and (c) absorb
the visa transfer costs. They apparently _did_ do so. The requirements
for a valid contract have been satisfied. You have a legal liability to
repay those expenses if you leave their employ in less than two years.
2) it *is* legal.
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In article <lnafv0dqmr56veo8unfb509tdjs7q33u0o@4ax.com>,
amanvohra@gmail.com wrote:
I work for a company in Atlanta, GA. My employer has made me sign a
contract, which says, if I leave the company before the end of my term
i.e. two years, I am liable for the expenses that the company has
invested on me. The expenses include, my training on training courses,
my relocation expense and my visa transfer fee.
Is this even legal? Can some one help me?
It very well could be. You would need to have an attorney
review it to make sure that the specific language is proper.
Sometimes the courts base their rulings on fairness rather
than the law. If your agreement is not pro-rated, you might
get a ruling in your favor since that doesn't seem fair.
-john-
--
======================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================
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I work for a company in Atlanta, GA. My employer has made me sign a
contract, which says, if I leave the company before the end of my term
i.e. two years, I am liable for the expenses that the company has
invested on me. The expenses include, my training on training courses,
my relocation expense and my visa transfer fee.
Is this even legal? Can some one help me?
Thnxs
Usually it is legal and frequently done. Companies like EDS regularly do
this with college hires. Almost all companies have such as clause concerning
relocation expense, although it is usually one year (not two).
If the company had to collect the money from you after you left, it would
harder for them to do it, and some companies may not bother to sue. But most
of the time, they can just deduct it from your last check (which often
includes accrued vacation time, and 401K contributions, etc) so you would
have to sue to get the money back from them. If you fail to pay, they might
be able to mess up your credit rating.
There "may be" a chance to contest it in court and win, but it would not be
easy. If this is EDS, I am sure they defended this in court before, so be
wary of spending money on a lawsuit against them.
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Mark A wrote:
<amanvohra@gmail.com> wrote
Usually it is legal and frequently done. Companies like EDS
regularly do this with college hires. Almost all companies
have such as clause concerning relocation expense, although it
is usually one year (not two). But most of the time, they can
just deduct it from your last check (which often includes
accrued vacation time, and 401K contributions, etc) so you
would have to sue to get the money back from them.
I don't know about other states, but in California an employer is
generally not allowed to offset employee debts and deduct them from a
paycheck.
Stu
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I work for a company in Atlanta, GA. My employer has made me
sign a contract, which says, if I leave the company before the
end of my term i.e. two years, I am liable for the expenses
that the company has invested on me.
Usually it is legal and frequently done. Companies like EDS
regularly do this with college hires. Almost all companies
have such as clause concerning relocation expense, although it
is usually one year (not two). But most of the time, they can
just deduct it from your last check (which often includes
accrued vacation time, and 401K contributions, etc) so you
would have to sue to get the money back from them.
I don't know about other states, but in California an employer is
generally not allowed to offset employee debts and deduct them from a
paycheck.
Stu
I once quit a job before my relocation contract expired and I owed the
company $2,500 (I got actual moving expenses plus $5,000 cash for the move,
all tax protected). They took it out of my last check. This was actually
important, because it reduced my income taxes and FICA taxes. If I had
handed them a check for the $2,500, it probably would have been a nightmare
getting them to report tax withholding correctly to the government. This was
not CA.
I am not sure that reimbursement of education and relocation expenses is a
"debt" to the company if someone quits. Maybe.
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Mark A wrote:
I once quit a job before my relocation contract expired and I
owed the company $2,500 (I got actual moving expenses plus $5,000
cash for the move, all tax protected). They took it out of my
last check. This was actually important, because it reduced my
income taxes and FICA taxes. If I had handed them a check for the
$2,500, it probably would have been a nightmare getting them to
report tax withholding correctly to the government. This was
not CA.
In California that would not be impossible, particularly if you
agreed. But if without your consent you could have made them pay you
back. possibly along with a penalty.
Stu
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Mark A wrote:
Usually it is legal and frequently done. Companies like EDS regularly
do
this with college hires. Almost all companies have such as clause
concerning
relocation expense, although it is usually one year (not two).
If the company had to collect the money from you after you left, it
would
harder for them to do it, and some companies may not bother to sue.
But most
of the time, they can just deduct it from your last check (which
often
includes accrued vacation time, and 401K contributions, etc)
I don't think they can just pull money out of someone's 401k plan.
Once money is in a 401k plan, it is pretty much protected against
almost
any and all attempts to attach it.
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Mark A wrote:
In California that would not be impossible, particularly if you
agreed. But if without your consent you could have made them pay you
back. possibly along with a penalty.
Stu
It was with my consent to have the money taken out of my last paycheck.
Otherwise it would have been a tax nightmare if I just handed them a check
for $2,500.
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