Legal Question in Employment Law in Virginia

I began working for an organization in 2005. In early 2010 I signed a continuing service agreement that stated if the organization provided me with $5000 in federal student loan repayment assistance over the course of 12 months in 2010, I would remain employed with the organization throughout all of 2011 and 2012.
The agreement states that if I leave the organization before December 2012 I will have to pay back any student loan reimbursement funds I have received, plus applicable taxes.
I have worked for the organization throughout 2010 --during which time they have provided me with student loan repayment assistance in the amount of $400 per month. The student loans they are providing assistance with were all incurred during my graduate studies, which I concluded in 2004 before I began working with the organization.
I know many organizations require employees to sign continued service agreements if the organization pays tuition or other training costs for the employee, while the employee is working for the company. However, if an employee works for an organization throughout the year that the company is providing student loan repayment assistance, is an organization legally allowed to require an employee to continue working with the organization for two years following the employee's receipt of student loan assistance--particularly when the academic training that the loan payed for was taken before the employee began working for the company?

Asked on 8/25/10, 6:36 am

Michael Hendrickson Law Office Michael E. Hendrickson

0 users found helpful

0 attorneys agreed

Yes, if that's what the continuing service agreement (contract) calls for (in my opinion).

Answered on 8/30/10, 7:23 am

Keywords

Match Any Match All

Country

State

Area of Law