Contract with Employer for Schooling

[UnhappyInOhio]

What is the name of your state (only U.S. law)? Ohio

Six months ago, my at-will employer advised they were upgrading to a new record keeping system for which many of us would have to obtain multiple certifications. The employer would pay for the schooling, travel and related expenses, however, we had to sign a contract that if we left the company within 18 months of the first day of travel, we would have to reimburse all expenses to the employer. This was a new strategy...no one in the past had been required to sign a contract for employer-requested, job-related schooling.

Many were very unhappy about having to sign this contract in order to remain employed. The contract essentially said that if you leave or they terminate your employment for any reason, you'd have to make full restitution. No dollar amounts or repayment schedules were listed since the actual expenses had not yet been incurred.

I am miserable and want to leave this employer since it is affecting my health. Not that it makes a difference, but I have absolutely no intention of utilizing these certifications elsewhere. Would it be unfair of me to expect my employer to prorate the amount owed since they benefited from my services for 6 months? Is this kind of contract even legally binding?

 

[cbg]

Yes, they can be legally binding. They are not even all that uncommon.

What you will need to do is show the entire agreement and all associated documents to an Ohio attorney for an assessment of whether THIS agreement is legally binding. Though we have an Ohio attorney here who may be able to give you some thoughts.

 

[swalsh411]

I can see a Court invalidating an agreement that required 100% payback if termination was within a year and a half as that is unreasonably long. Best practice according to SHRM is to pro-rate it because then the employer is in a defensible position because they did at least partially benefit from their investment. You can't force them to do this however.