Legal Question in Business Law in North Carolina

I was given a retention bonus to stay with my current company for 2 years. They took almost 40% in taxes when they paid it to me and I put it in the bank and did not spend it. I am leaving in 2 weeks and will have to pay it back, however, they are saying I owe the pre-tax amount on my last day. I did not sign anything stating a timetable of repayment. And there is no way to reclaim the taxes until next year's return. Can they legally do this?


Asked on 2/16/11, 5:14 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say the answer is probably not. Your best course of action is to contact your local employment development or labor department and explain the situation. They will advise you and take appropriate corrective action against the employer. That's what they are paid by your tax dollars to do. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

Read more
Answered on 2/16/11, 7:17 am


Related Questions & Answers

More Business Law questions and answers in North Carolina