Handling Repayment Demands from Your Former Employer
Understanding Repayment Demands from Former EmployersLeaving a job, whether by choice or through termination, can be unexpected and stressful, especially when your former employer demands repayment of money. Such demands typically arise from situations where they believe you were overpaid during your employment or when you had a prior agreement to repay bonuses, training costs, or other benefits if you left before a specified time. This article outlines your rights and considerations when faced with such demands.
Repayment Demands and Your Final PaycheckIn most cases, your former employer cannot unilaterally deduct the disputed amount from your final paycheck or commission. Massachusetts law imposes strict limitations on wage deductions, and such actions could potentially violate the Wage Act. It is essential to understand your rights and consult with an attorney if your employer attempts this approach.
Dealing with OverpaymentsThe question of whether you must repay overpaid wages is not definitively settled under Massachusetts law. The Attorney General's office provides guidance, suggesting that repayment should be assessed based on "fundamental fairness." Several factors, including your level of fault, your employer's negligence, your ability to repay, the hardship you would face, and the amount overpaid, would influence the decision. Therefore, consulting an attorney, particularly for substantial overpayment demands, is advisable.
Agreements for Bonuses, Training, and Relocation CostsEmployers may offer benefits like signing bonuses, relocation packages, or training, which may require repayment if you leave before a specified period. These agreements are typically enforceable, but there are important factors to consider:
a. Agreement Language: Carefully review the contract's language to determine the specific triggers for the repayment obligation. Does it apply only if you resign, or is it triggered by employer-initiated termination? b. Benefit Receipt: Ensure that you actually received the benefit before agreeing to repay it. While repaying a signing bonus is straightforward, there may be cases where promised training was not provided or fulfilled. Additionally, you can challenge the repayment if the stated value of the training significantly exceeds what was offered. ConclusionWhen your former employer demands repayment, it's essential to understand your rights, assess the circumstances, and consider consulting an attorney, particularly for significant amounts or complex situations. By navigating these challenges effectively, you can protect your interests and ensure a fair resolution.
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Meet Our Employment Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts. Along with the rest of the slnlaw team, she has helped hundreds of clients navigate, negotiate, or defend against the terms of their employment agreements, including non competes, non solicitation agreements, employment contracts with intellectual property provisions and other restrictive covenants, and executive employment agreements.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped many clients understand and evaluate their non compete agreements and develop strategies for defending against non compete enforcement and negotiating resolution, and understand and navigate other employment contracts.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna works with employers to develop reasonable and enforceable employee agreements, including non competes, non solicitation agreements, executivev employment agreements and incentive agreements. She has also helped employees understand and evaluate their non compete agreements and develop strategies for defending against non compete and non solicitation enforcement and negotiating resolution.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients both evaluate and negotiate their employment agreements, including non competes, non solicitation agreements, employment contracts with intellectual property provisions and other restrictive covenants, and agreements requiring employee payback of retention bonuses or training expenses. Eli has also defended claims against employees based on employment contracts in state and federal courts.
How We Can Help
Our experienced team can provide you with personalized legal counsel to address employer repayment demands effectively, ensuring you're equipped with the knowledge and strategies needed for a fair resolution. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
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