Legal Question in Employment Law in California
Repayment
I work for consulting co. Recently Co. sent a employee hand book which has a clause stating that if i leave the co. with in the period ,i have to pay some lumpsum amt back to company. I acknowledge it without reading the employee hand book. Is there any way graciously comming out of co.Incase i have to resign within the said period. Thanks
1 Answer from Attorneys
Re: Repayment
It depends on what the repayment is for and when it applies. For example, if the company paid for relocation expenses and had you agree that if you left within a year, you would have to pay those expenses back, it is legal. However, simply to come up with an arbitrary sum as a sort of penalty should you decide to leave is absolutely illegal. You need not sign, but if you do, it would be unenforceable. Furthermore, employers cannot impose terms which apply retroactively.
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