Legal Question in Employment Law in California

Re: Repayment

It depends on what the repayment is for and when it applies. For example, if the company paid for relocation expenses and had you agree that if you left within a year, you would have to pay those expenses back, it is legal. However, simply to come up with an arbitrary sum as a sort of penalty should you decide to leave is absolutely illegal. You need not sign, but if you do, it would be unenforceable. Furthermore, employers cannot impose terms which apply retroactively.