Legal Question in Employment Law in California

Repayment of living/training expenses

I joined my company 4 weeks ago to engage in a Management Trainee program which will include a one-year stay abroad at their headquarters. I am now presented with a completely new contract that states that I will have to pay back living/training expenses that will be incurred during the trainee program if I terminate employment withing 36 months upon completion. For every month with the company after the program, 1/36 of the total cost will be deducted. There is no specified amount in the contract. The fact that I will have to sign a new contract was not told when I was originally hired (although I specifically asked about my obligations). Is this contract enforceable if signed?


Asked on 5/29/06, 6:13 pm

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

Re: Repayment of living/training expenses

I have expressed my opinion in this forum before that I do not believe these contracts are enforceable, as the employer is trying to pass on the cost of doing business to the employee. They also are trying to have the best of all worlds by maintaining an "at-will" employment relationship from their end but preventing you from leaving at your will, due to economic pressure. Finally, it sounds as though the agreement is unconscionable, because they thrust this agreement upon you after having commited to 4 weeks of training.

Having said that, no one can promise this employer won't try to enforce the agreement, should you leave within 36 months. Nor can anyone predict what the courts will do. This is just my legal opinion.

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Answered on 6/07/06, 6:46 pm


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