3 ms·

News flash. There is no way they can get that money back. She can walk at anytime

by nwellinghoff 5y ago

JohnBooty 5y ago
Can you back this up? Labor laws vary significantly by country/state.
- deleted 5y ago
  [deleted]
Jtsummers 5y ago
This would largely depend on the particular contract. Money can be paid conditioned on an expectation of working for a period of time. Failure to meet your end can result in having to pay it back (in full or in part).
- R0b0t1 5y ago
  Case in TX where this was overturned. Employer was Buc-ees. The amount in question was far higher, about $100k, as the employee was given a $X/hr raise contingent on at least Y years of service. Court ruled contract violated right to work. This may mean bonus clawbacks can't work.
  - Jtsummers 5y ago
    https://cases.justia.com/texas/fourteenth-court-of-appeals/2017-14-15-01061-cv.pdf?ts=1507810495 https://cases.justia.com/texas/fourteenth-court-of-appeals/2... Interesting case. I'm not a lawyer and have only given this a quick read, but it seems that the amount she could owe back was essentially unbounded, the longer she was there the more she could owe back. That was a major factor in the decision against Buc-ee's. See pages 8 and 9, in particular. I don't think this would work against bonus claw backs in general, only if they were similarly considered unreasonable and also only in TX, whose laws were violated in this case. (EDIT: Or states with similar laws, obviously.) A $10k signing bonus that has a bounded and shorter obligation period could be considered reasonable. > As noted above, an enforceable covenant must contain limitations as to time, geographic area, and scope of activity to be restrained that are reasonable and do not impose a greater restraint than necessary to protect the employer’s business interest. https://statutes.capitol.texas.gov/Docs/BC/htm/BC.15.htm https://statutes.capitol.texas.gov/Docs/BC/htm/BC.15.htm Sections 15.50 and 15.51 are the relevant parts.

News flash. There is no way they can get that money back. She can walk at anytime

JohnBooty 5y ago

Can you back this up? Labor laws vary significantly by country/state.

deleted 5y ago
[deleted]

Jtsummers 5y ago

This would largely depend on the particular contract. Money can be paid conditioned on an expectation of working for a period of time. Failure to meet your end can result in having to pay it back (in full or in part).

R0b0t1 5y ago
Case in TX where this was overturned. Employer was Buc-ees. The amount in question was far higher, about $100k, as the employee was given a $X/hr raise contingent on at least Y years of service. Court ruled contract violated right to work. This may mean bonus clawbacks can't work.
- Jtsummers 5y ago
  https://cases.justia.com/texas/fourteenth-court-of-appeals/2017-14-15-01061-cv.pdf?ts=1507810495 https://cases.justia.com/texas/fourteenth-court-of-appeals/2... Interesting case. I'm not a lawyer and have only given this a quick read, but it seems that the amount she could owe back was essentially unbounded, the longer she was there the more she could owe back. That was a major factor in the decision against Buc-ee's. See pages 8 and 9, in particular. I don't think this would work against bonus claw backs in general, only if they were similarly considered unreasonable and also only in TX, whose laws were violated in this case. (EDIT: Or states with similar laws, obviously.) A $10k signing bonus that has a bounded and shorter obligation period could be considered reasonable. > As noted above, an enforceable covenant must contain limitations as to time, geographic area, and scope of activity to be restrained that are reasonable and do not impose a greater restraint than necessary to protect the employer’s business interest. https://statutes.capitol.texas.gov/Docs/BC/htm/BC.15.htm https://statutes.capitol.texas.gov/Docs/BC/htm/BC.15.htm Sections 15.50 and 15.51 are the relevant parts.