Relocation Repayment

[jmm7175]

When I started my current job (I work in MA), I signed an agreement to pay back my $2000 relocation bonus if I left before 1 year of employment. I am now leaving and it has only been 6 months. I understand that it is my obligation to repay the bonus. However, the company has informed me that they will be taking my last 2 paychecks (3 weeks of pay) to cover this expense and that I will still owe a small amount (which they are demanding I pay before my last day of work). Can they do this? The contract states nothing of when the debt is to be repayed, only that I owe the money. Not getting paid for 4 weeks will create an extreme financial hardship on me. help please!

Jason

 

[Beth3]

They very likely cannot do this. In the majority of States, payroll deductions cannot be made without the employee's authorization.

Contact your State's Department of Labor.

 

[cbg]

They cannot withhold your paychecks. However, they may be able to require payment before you leave. It will depend on the EXACT wording of the document. Show it to a local attorney.

 

[jmm7175]

The exact wording is:

"We will provide you with a $2,000.00 relocation bonus with your acceptance of the position. If you should decide to leave _______ prior to one year from the date of this offer, you will be required to pay back to amount of the bonus."

This was included in the offer letter I signed when I accepted the position.

Thanks,
Jason

 

[cbg]

I say again, show it to a local attorney. We cannot interpret your agreement based on a single paragraph.

 

[jmm7175]

Update

I just spoke to the Massachussets Attorney General's Office (they are the folks who handle wage issues). They informed me that my agreement to pay back the funds constitutes as an authorization for them to withhold wages.

Thanks for the quick response from all of you.

Jason

 

[cbg]

It surprises me that they allow the entire check to be withheld (usually, they require that at least minimum wage be paid) but if they say your employer can do this, they can. The AG's office is the final authority in MA.