Legal Question in Business Law in California
Relocation Reimbursement
I would like to know if I am required to pay back a relocation package.I moved from the East Coast to California for a posistion.
Why I ask the question:
1 - The company I was hired by was announced to be acquired 7 weeks after I arrived. The deal closed within 3 months of my arrival.
2 - The company I was initially hired by traded as a public entity on the NYSE. Now we are a subsidiary.
3 - The company I was initially hired by traded offered a Stock Purchase plan and a 5 year pay in to a pension plan ( rare these days.) These benefits have been removed and have not been off set by a similar option. I am no longer offer a stock plan or a pension plan.
4 - Other things have changed as well. 401K requires 3 years of employment to be vested.
5 - I was to be involved with SEC reporting working with the CFO who interviewed me and as a subsidiary I do not interact with the CFO and we do not perform SEC reporting.
6 - As a result of the acquisition it took several months before I was able to perform the position I was hired for. I was told my project was put on ice.
2 Answers from Attorneys
Re: Relocation Reimbursement
I'm going to fill in a blank here and assume that you would have been obligated to repay the relocation package if all had gone as you expected, i.e., that it was a loan and not a signing bonus or the like.
So, what you're really asking is whether the changes in circumstances relieve you of your obligation to repay. This is then a matter of contract interpretation. The issue is whether continued employment on certain terms and with specified duties was an express or implied condition of your obligation to repay.
One cannot know the answer without reading the relocation-package contract, and probably any separate employment contract or written offer, if any.
While it's possible the employer would tie its hands by writing a relocation loan which was tied to your being employed in a specific capacity, more likely the loan would be forgiven only if the employer terminated you without your fault (if at all).
By the way, are you still employed by this employer? I see that your posting indicates that you are in Colorado at present. If you resigned, I'd say that further limits the likelihood you'd be eligible to escape a repayment obligation.
Re: Relocation Reimbursement
Your contract and written agreements /documents will help determine how you can get out of this with the least damage and move on. This may be negotiable with your alleged changed circumstances and failure to provide agreed job/benefits. Feel free to contact me to discuss.
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