6 ms·

https://en.m.wikipedia.org/wiki/Golden_handcuffs https://en.m.wikipedia.org/wiki/Golden_handcuffs How would training followed by a bonding period be considered

https://en.m.wikipedia.org/wiki/Golden_handcuffs https://en.m.wikipedia.org/wiki/Golden_handcuffs How would training followed by a bonding period be considered differently than other mechanisms inducing employees to stay? Could these other mechanisms also be legally questionable? E.g. some San Francisco Bay Area technology companies offer large (~$20k) signing bonuses to new uni graduate hires that the employee must return if she leaves within her first year at the company. Similarly, companies offer five-year equity packages that deliver no equity until the twelfth month.

__z 11y ago
Yeah, I heard about companies who pay for college - as long as you stay one year after your last class. If not you have to pay them back. Actually, just pay back just the tuition you spent in the last year.
- malyk 11y ago
  When I started my first job out of college in 2001 the way the company did it for my masters program was to give interest free loans to cover the cost, then forgave that loan balance over the course of a few years (forget how long). I got my masters degree and then stayed at the company for a year and a half before leaving. At which point I had to pay back the remaining loan balance. Worked pretty well for the situation, but that would only work if the cost of training wasn't exorbitant and the worker pay was relatively high. I believe I was making $58k when I left and had to pay $8k or so to repay the loan. Doable for me, but not necessarily so for a lot of people.
- mariodiana 11y ago
  Seeing as Army ROTC will want 4 years, it sounds like a great deal.
  - __z 11y ago
    If you take classes for 4 years then you'll have to stay 5 to get your education fully paid off. If you took 4 years of classes and worked for 4 years then you'd owe them 1 year tuition (the previous year) That being said, this deal was to further your education for your job. So you couldn't get your masters in finance unless you worked in finance. A software developer couldn't get their finance degree paid for. This was for a company my friend worked for.
dnautics 11y ago
Hard to say, but if banned it seems like that sort of a signing bonus could simply be retraced by issuing a signing bonus that only vests after one year. And of course, the hire could probably finaigle a loan against it to have it basically be the same as the original intent, except with a middle man taking out interest.
__z 11y ago
Vesting options on your 401(k) are common. For example, my company does it like this: First year - no company 401(k) contributions. Second year - full 401(k) contributions but 25% vestment. That means you get the money in your account (and it compounds) but if you leave before you hit your third year you only get to ultimately keep 25% of the money they contributed. Third year - 50% vested. Fourth year - 75% vested. fifth year - 100% vested. Money is all yours. (I think vested is the right word, correct me if I'm wrong) Also, I worked for a company (in a non-technical position) where they initially hired at a low rate. You learned your job as you went and each job milestone had a test (written and practical). Passing the test netted a large increase in salary. You could learn other jobs other than the one you were hired for and increase your salary even more. It was a great system.
- jackmaney 11y ago
  No, "vested" is exactly the right word for this.

__z 11y ago

Yeah, I heard about companies who pay for college - as long as you stay one year after your last class. If not you have to pay them back. Actually, just pay back just the tuition you spent in the last year.

malyk 11y ago
When I started my first job out of college in 2001 the way the company did it for my masters program was to give interest free loans to cover the cost, then forgave that loan balance over the course of a few years (forget how long). I got my masters degree and then stayed at the company for a year and a half before leaving. At which point I had to pay back the remaining loan balance. Worked pretty well for the situation, but that would only work if the cost of training wasn't exorbitant and the worker pay was relatively high. I believe I was making $58k when I left and had to pay $8k or so to repay the loan. Doable for me, but not necessarily so for a lot of people.
mariodiana 11y ago
Seeing as Army ROTC will want 4 years, it sounds like a great deal.
- __z 11y ago
  If you take classes for 4 years then you'll have to stay 5 to get your education fully paid off. If you took 4 years of classes and worked for 4 years then you'd owe them 1 year tuition (the previous year) That being said, this deal was to further your education for your job. So you couldn't get your masters in finance unless you worked in finance. A software developer couldn't get their finance degree paid for. This was for a company my friend worked for.

dnautics 11y ago

Hard to say, but if banned it seems like that sort of a signing bonus could simply be retraced by issuing a signing bonus that only vests after one year. And of course, the hire could probably finaigle a loan against it to have it basically be the same as the original intent, except with a middle man taking out interest.

__z 11y ago

Vesting options on your 401(k) are common. For example, my company does it like this: First year - no company 401(k) contributions. Second year - full 401(k) contributions but 25% vestment. That means you get the money in your account (and it compounds) but if you leave before you hit your third year you only get to ultimately keep 25% of the money they contributed. Third year - 50% vested. Fourth year - 75% vested. fifth year - 100% vested. Money is all yours. (I think vested is the right word, correct me if I'm wrong) Also, I worked for a company (in a non-technical position) where they initially hired at a low rate. You learned your job as you went and each job milestone had a test (written and practical). Passing the test netted a large increase in salary. You could learn other jobs other than the one you were hired for and increase your salary even more. It was a great system.

jackmaney 11y ago
No, "vested" is exactly the right word for this.