I have no idea with the legality behind this, but I see it similar to employment clauses and other noncompete clauses as well.
Jopaz wrote:- Is the policy legally enforceable?
Jopaz wrote:- If the policy has been "sporadically" enforced (i.e. not try to collect from everyone who left), does that weaken the company's position?
Jopaz wrote:- My understanding is that this cannot legally be witheld from the employee's final paycheck or unused vacation/sick time payments, is this correct?
Jopaz wrote:- Since the employee does not actually have the money (he spent it on the tuition), is it reasonable to set up a payment plan? Then what happens if the employee does not meet the payments?
Jopaz wrote:- In general, what recourse, if any, does the company have after the employee leaves?
tifosi77 wrote:Jopaz wrote:- My understanding is that this cannot legally be witheld from the employee's final paycheck or unused vacation/sick time payments, is this correct?
In CA, employment law states that employers cannot set off debts between the company and a departing employee by withholding pay. But that's not universally the case. If PA does not have this restriction, I think they can withhold every dollar over minimum wage represented in the vacation time payout. For example, say you, er the employee has two full weeks of vacation time to cash out. At 40 hrs a week, that's $580. But if you're salaried at $40k/yr, two weeks (before tax) is just over $1,500. So that's about $1,000 that's presumably up for grabs upon separation.
Mango Salsa wrote:My girlfriend works in a nursing facility and they have a policy like this. After you've worked there one year they'll send you to nursing school but you have to pass your classes and I think you owe them two years service once you graduate or you have to pay back the tuition. She says they dont enforce it, though.
Jopaz wrote:Also, a case can be made that the company received some benefit from the additional training/knowledge while the employee was still there. And a large company might let this slide but even $10K is a big amount for a smaller company.
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