mardi 5 janvier 2016

Resignation: Relocation Bonus Supposed to Be Paid Back, but Company Never Asked for It

My question involves labor and employment law for the state of: California

I was hired by a company in 2014 and received a relocation bonus of $18000 to move from Brazil, to Los Angeles, CA. I signed a contract with them that said that I would have to return that bonus if I left the company before two years. Despite that, I decided to leave the company 3 months ago, after my 1 year anniversary with them. On my last day, I discussed the bonus situation with HR over the phone. They said that they would send me a promissory note to sign before leaving along with the details on how to pay them back. However, they never got in touch again. I ended up not signing any other documents or paying anything.

I want to know what is my liability in this situation. Since I have not paid them yet, can my company come back after me charging more than the actual bonus? For example, can they charge interest, attorney or recollection fees? What would be the implications if I just wait for them to contact me?

I have pasted below the most important parts of the contract that I signed with them in order to receive the bonus.

3. Period of Time for Reimbursement Obligations
Employee will be obligated to reimburse COMPANY for any and all Relocation Expenses if
he or she Terminates Employment within 24 months from [relocation date or
employment start date, as applicable] (the “Relocation Date”).

5. Amount of Relocation Expenses for which Employee Must Reimburse COMPANY
If Employee Terminates Employment during the 24-month period after the Relocation
Date, Employee must reimburse COMPANY for any and all Relocation Expenses incurred
or reimbursed by COMPANY in connection with the relocation in accordance with the
repayment schedule in the chart below.

Repayment Schedule
Months of Employment Expenses to be Repaid
Months 1 – 12 100%
Months 13 – 16 75%
Months 17 – 20 50%
Months 21 – 24 25%

6. Employee Consents to Salary Reduction
If Employee Terminates Employment and has an obligation to reimburse COMPANY under
this Agreement, to the extent allowed by applicable law, Employee authorizes COMPANY
to deduct the amounts owed for Relocation Expenses from Employee’s outstanding
salary, vacation payments, bonuses, or any other payments to be made by COMPANY to
Employee. If amounts owing pursuant to this Agreement remain unpaid after
Employee’s last paycheck from COMPANY, Employee agrees to pay COMPANY such
amounts upon employment termination or, at COMPANY’s discretion, execute a
promissory note, in a form and substance satisfactory to COMPANY, for the amounts that
remain unpaid by Employee.


Thank you very much


Resignation: Relocation Bonus Supposed to Be Paid Back, but Company Never Asked for It

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