Legal Question in Employment Law in California
Employment Contract committed myself for one year
In June, 2000 I was relocated from NY to California by my company. At the time I signed a contract stating I would commit to work for the same company for a year, or pay back the cost of the relocation.
Due to family circumstances, I need to move back to NY. I have asked for a transfer but have received no commitment. I have worked for a total of 6 years with the same company, 3.5 years at one stretch.
1. Can the company enforce this contract in court and force me to pay them back?
2. If yes, would a company normally go through the hassle of suing, if only a few months were left on the contract?
3. If I only had a few weeks left on the contract (i.e. I left in May after 11 months) would a judge hold me to the contract?
4. Does anyone have any recommendations on how to handle this situation?
Thank you for your assistance in this matter
2 Answers from Attorneys
Re: Employment Contract committed myself for one year
Employment contracts requiring repayment of relocation expenses are generally enforceable if written properly. Of course it is impossible to predict whether your employer would actually go to the trouble of taking you to court but you may still worry about whether they will and run the risk of losing a good reference. The best course of action is to attempt to negotiate with your employer so that you may leave on terms acceptable to both of you. If that fails, try to remain for the final month, if possible. If both options are not possible, contact an attorney to negotiate with the company for you.
Re: Employment Contract committed myself for one year
Your question is not actually an "employment" question, but raises several important contract issues. First, yes, if the contract is properly written and signed by the parties, it is enforceable in court. The amount of time remaining on the contract is irrelevant to its enforceability, which is to say that whether you breach on the first day of the term or the last day, it is still a breach.
The question as to whether your company will pursue enforcement is a business decision on their part and would likely take into account the amount of money involved (i.e. how much did your relocation cost them). Some companies, as a matter of policy will enforce such contracts regardless of the cost/benefit, as a way of setting precedent for future contracts they enter into, and putting others on notice that they will enforce their rights.
It would be better if you could work out with the company a suitable amendment to your agreement. If you really have no choice about leaving, and the company appreciates the years you have given them, it would be reasonable to expect they would work out some kind of suitable settlement. The best thing to do at this point is speak to the human resources director, or the company executive with authority to make an agreement with you, to see if something can be worked out. From what you have said, however, you have no legal basis for forcing the company to change the agreement. Of course, an attorney with all the facts concerning your individual situation could better advise you on a specific course of action.
The above is intended as general information only and should not be construed as legal advice.
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