Legal Question in Business Law in Illinois

Re-payment of Sign on Bonus

I left my consulting position with one of the ''big five'' consulting firms within nine months because of the company's admitted unfair treatment of my me during project assignment which forced my decision to leave the firm. The unfair treatment was concurred in addition by the firms acting Partner. My sign on bonus stated that under normal circumstances pro-rated re-payment was due if I were to leave prior to 12 months or the firm was to let me go prior to 12 months.

Now, May 13, 2006, six months after my severence, I received a post dated letter ( October 12, 2005) requesting pro-rata repayment of the sign on bonus in the amount of $1814.86. In light of the conditions of my severence where do I stand on refuting this payment?

Thank you


Asked on 5/13/06, 6:52 pm

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Re-payment of Sign on Bonus

In a strict contractual sense you probably owe the repayment.

But we see this again and again. Many companies know they have difficult environments and therefore structure signing bonuses with such repayment clauses.

I can't recommened that repay or don't repay. That's up to you. If you don't repay, the company may come after you in court and could win a judgement for the contractual amount. If you do repay you know exactly how much money you are out. If you don't repay there is a greater downside potential.

If you don't pay the company may sue, or may simply pass the matter off to a collections company. If they sue, you can fight it and at least make it expensive to recapture that money. If they apss it off to collections you can just wait until the collections company starts dunning you. Then get familiar with the Fair Debt Collection Practices Act and make enforce your rights within that law. When (not if, but when) the collections company violates the FDCPA you can sue in small claims court for the statutory damages.

In either case, remember that the contract you signed governs and no matter what you may owe the money no matter if the company actually tries to enforce or collect.

Regards,

Roger Traversa

email: [email protected]

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Answered on 5/14/06, 11:22 am


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