Legal Question in Employment Law in Louisiana

Company filing with collection agency to recoup moving expense

My previous company moved me from TX to LA and in my employment offer letter it stated that If I were to terminate employment within 12 months of moving that I would owe a prorated amount for the expense. The company terminated me 40 days prior to the completion of the year and are trying to force me to pay the prorated amount. What can I do to stop them from going to a collection agency? Do I legally owe them the money? If I don--name removed--owe them the money and they do file with the collection agency, what should my recourse of action be?


Asked on 7/02/03, 8:39 am

2 Answers from Attorneys

Hardy Parkerson Retired Attorney; now Law Professor

Re: Company filing with collection agency to recoup moving expense

Dear Law Guru Friend,

I read your question, but I do not understand if the agreement was that you would pay your pro-rata share of the moving expenses only if you yourself made the decision to terminate. I would have to read the agreement (or employment offer letter) to see if it required you to pay your pro-rata share of moving expenses even if the company made the decision to terminate your employment. Assuming it was this last way, that you owed your share even if the employer terminated you, then you would owe it. Forty days is just a little over one-twelfth (1/12) of the total moving expenses paid by the company. That should not be all that big of a deal. Now, did it say when you were to pay it, or how you were to pay it? I suggest you pay it when you can and how you can. Send them a little a time, if you have to. Try to be regular with payments, however. Also, to attempt to stop them from turning this over to a collection agency, write them a letter asking them not to do so, and advising them that if they do, they and the collection agency will be subject to the strict requirements of the Fair Debt Collection Practices Act, a federal law; and that your opinion, based upon what you have been advised by a lawyer, is that it would not be in their best interests to turn it over to a collection agency, especially since you plan to pay your pro-rata share of the moving expenses. Ask them to itemize those expenses, and then examine the itemized statement to make sure you are not being over charged. As I say, a deal is a deal; and if you took the job knowing that stipulation was in the job offer package, then you should comply with your agreement. But, as I say, unless there is some stipulation as to how and when you are to pay, it is up to you as to how and when; and you should do the best you can to pay what you owe and get this unfortunate situation behind you. Life has its little ups and downs, and this is a little down for you. Things will get better! Best of luck!

Sincerely,

Hardy Parkerson, Atty.

Lake Charles, LA

P.S.: If you need a copy of the FDCPA, call me, and I will send it to you.

Read more
Answered on 7/09/03, 10:32 pm
Nick Pizzolatto, Jr. Pizzolatto Law Office

Re: Company filing with collection agency to recoup moving expense

You need to speak with an attorney so he can read and interpret the agreement letter. If you did not, by action or inaction, terminate your employment, it seems you owe them nothing. But I have not read the letter you refer to, so seek counsel.

Read more
Answered on 7/02/03, 6:51 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in Louisiana