4 ms·
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 continge
by 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 agohttps://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.