Legal Question in Employment Law in New Jersey

Would it be legal for a company to enforce an exit clause within a full-time employee contract stating that if I were to leave within an X amount of time I would need to pay X amount of money? If so, would I be able to terminate the contract on grounds that they are discontinuing the role withing 6 months?


Asked on 7/25/12, 10:21 am

2 Answers from Attorneys

Barry Gartenberg Barry F. Gartenberg LLC

As H.L. Mencken said, �For every problem there is a solution that is simple, neat and wrong.� Your question has a lot of "moving parts" and cannot be answered in the abstract. I routinely advise clients in such matters, but I would need to review the contract and speak with you. Please visit my website! www.bgartenberg.com or call me if you�d like to discuss your question or learn more about me or my practice. Thank you.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

IRS CIRCULAR 230 DISCLOSURE: As required by U.S. Treasury Regulations governing tax practice, you are hereby advised that written advice contained herein (if any) was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

With best wishes,

Barry F. Gartenberg, Esq.

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Answered on 7/25/12, 11:12 am
John Corbett Corbett Law Firm LLC

It's difficult to answer without reading the contract. It is not uncommon for an employment contract to include a provision for repayment of a signing bonus if an employee leaves too soon. If the contract purports to affect salary that has been paid, it is more likely that the term would be considered to be a penalty and not enforceable. The elimination of the position is another matter. Arguably, the time period established by the "penalty" also serves to establish a promise to keep the position open for at least that long and the failure of the employer to honor that provision is a breach of the contract. Fax or email the contract and I might be able to give you a more complete opinion.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 7/25/12, 10:12 pm


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