Legal Question in Employment Law in California
Bonds and employment agreement
I've 3 questions.
1. My husband was required to sign an agreement that he will remain with his company for 2 years from the date they had sent him to a technical training course. In default he will have to repay the company $20,000. Is this legal? What if he is laid off before the 2 years is up? Will he still have to repay that amount? Are bonds as such legal in the US?
2. The company is applying for a green card for him and again, he is required to remain with the company for 2 years from the date his status is adjusted. In default, $25,000. Also, he will have to repay the company all legal fees incurred for the application up to that point of him leaving the company, if the 2 years is not up. Is this too legal? What if he is terminated before the green card is approved?
3. The company keeps making revisions to the employment agreement and have the employees sign the entire agreement all over even after having been employed for more than 2 years. Not an amendment or addendum. I think this is unfair as the person is already employed based on the originals terms that the parties have agreed to and now it would seem that you have no choice in the matter. Sign or leave. Is that legal?
2 Answers from Attorneys
Re: Bonds and employment agreement
It depends on what the reimbursement is for. If the company is attempting to get paid back for expenses it has spent on your husband, such as for training or moving expenses, it is legal. However, it cannot require him to pay back salary or benefits he has earned. The $20,000 sounds very high and arbitrary, and I would question its legitimacy. It sounds more like intimidation. Employers often change the terms of employment contracts, but whether it is legal depends on what the contracts say and how they are getting the employees to sign.
Re: Bonds and employment agreement
In no case does the law permit a personal services contract to extend beyond 7 years, including extensions, amendments, etc., and it sounds as if the term you describe is less than that.
As for repayment for training or applications for green card, if your husband agrees the company can require him to pay that if he terminates the agreement before it expires. However, it is highly unlikely that an agreement would require such repayment if the company opted to terminate the agreement.
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