Legal Question in Credit and Debt Law in Texas
The company owner has loaned money to his employees from time to time and allows them to make payments by payroll deductions. He had me draw up a document for each to sign stating that if they left the company for any reason (either on their own, or we terminated them), the balance of the loan would come out of their final check.
He recently was thinking that he needed to add a clause that if the employee's final check would not cover the loan, that the company would pursue any means possible to get the balance of the loan, legally if necessary. This was typed up as a loan addendum with that being the only change.
Can he make that addendum after the original contract is signed? Just checking before I bring the employees in to sign this document.
1 Answer from Attorneys
Unless the original contract made some provision for subsequent revisions that only the employer need agree to, then, no, he cannot add the clause. However, if the employees sign the revised agreement, they're on the hook for it. If they don't sign the revised agreement, then the original stands. Of course, wanting to keep their jobs and worrying about the consequences if they don't sign the revised contract, chances are that they'll sign it anyway. Doesn't make it right but that' s just the way things go these days.
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