Legal Question in Employment Law in California

Retention Bonus Payback

I signed an offer letter with my current employeer that guaranteed a signing bonus and a 1 year retention bonus. The letter says that if I leave this company before 2 years, then I must pay back a portion of both bonuses. I just recently received the 1 year retention bonus, but I was also offered a new job at another employeer that I can't turn down. The problem I'm having is that I do not have the money to pay my current employeer the portion of the bonuses due when I leave. I want to pay them back but cannot at this time. What are my legal rights? Can I extend the pay back period to 30 days after I leave? Can they hurt my credit? What kinds of legal actions could they initiate?

Thanks for your help.


Asked on 4/03/00, 3:42 am

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Retention Bonus Payback

The only thing they can really do is sue you for the money. First, see if they ask for it after you quit. if they do, start paying what you can and they are unlikely to sue as long as payments are being made.

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Answered on 4/19/00, 3:15 am


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