Legal Question in Employment Law in California

To Repay or Not Repay

I took a job 5 mos ago. I got a large sign-on bonus and relo exp. I signed payback agreement that says I have to pay back all or a portion if I do not stay for 3 yrs, the payback is pro-rated. If I�m fired, I wouldn�t have to pay back. The position description was vague to the company�s benefit but I was verbally assured the company would be investing heavily in the dept., etc. The position and dept for which I was hired was eliminated 3 mos after I started due to money problems of the company. I was given a position, less interesting but close to my original position, under a new boss. Next, the company told us that a major re-org is coming and the dept and position I�m in now will be eliminated. Layoffs are likely. The re-org could take 3 months.

Of course, I searched for a new job. I found one but I�m tied by the payback contracts. I�ll likely be fired in 3mos with worse economy and new job won�t wait. New employers won�t repay for me. Can't afford nor wish to repay. I have discreetly checked to see if they would accept my leaving w/o repay but the response is negative. Of course, they also will not promise to keep me for 3 years. Can I challenge my obligation to repay based on this circumstance?


Asked on 3/15/01, 2:53 pm

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: To Repay or Not Repay

It is a risky move because it might invite a lwsuit against you, but it could be argued that the employer breached the contract with you first, and made it impossible for you to continue employment because of its breach. There is also something called anticipatory breach. The best course of action is to attempt a resolution before leaving. If not possible, you may have to face them in court and ask the court to declare what rights and obligations you and the employer have with each other. A cheaper way to resolve this is to suggest mediation or arbitration.

Read more
Answered on 6/03/01, 4:27 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in California