Legal Question in Employment Law in California
I signed a tuition reimbursement agreement with my previous employer at a California based publicly traded firm where the firm agreed to pay half my grad school tuition if I were to stay with the company for at least 2 years after graduation. However after years of company-wide salary freezes I was told that I couldn't get a raise myself since my tuition counted as an extra monetary "bonus." Recently I left my previous employer for a new company and the previous employer made me sign an agreement that I would pay the amount I used for school under an installment plan. I feel that me paying back the money is unjust since it was really up to my manager who I felt used it against me for leaving the company since the money I would pay back is "shadow" money to the company that wouldn't even be official under the books. Under Section 221 of the California Labor Code am I entitled to pay back my employer since the tuition money spent was equivalent to additional wages? What legal basis do I have and is it enforceable?
2 Answers from Attorneys
You really think your publicly traded employer didn't vet the program through legal before setting the rules? If you didn't stay the two years you owe the money. Be happy to have an installment plan.
I agree with Mr. McCormick. You signed an agreement and accepted the benefit of helping you get through school knowing you would have to reimburse them if you did not stay for two years. Now, you want out of the commitment you made because you did not like your compensation. I'm sorry, but that is not a defense to breach of contract. Maybe it was a bad deal for you but a deal is a deal. This is not an issue that is covered by LC 221.
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