Employer request for reimbursement of tuition expenses

[Axed]

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

In late August of 2008 I was laid off from my position with a large company. At the time of layoff, I had to relinquish all access badges, codes, equipment, etc. I received a letter stating that my position had been eliminated due to the economy. The letter stated that my last day of employment was that day, but I would be paid through September 10th. My official termination date would be September 10th.

On September 8th the company contacted me and offered me another position in a different department. I accepted the position and all was well. I resigned from the company in May of '09 and received a letter from them requesting nearly $1,000 in tuition reimbursement they paid me in early June of 2008. Their tuition program states that you must remain employed for one year after disbursement, and are required to repay any funds they disburse if you resign within that 12 month period. It turns out I was a couple of weeks from fulfilling the year. The business policy, which I have a copy of, also states that funds to not have to be repaid in the event of involuntary termination without case, such as a layoff.

I believe that the original contract I had with the company was nullified by them when they laid me off in August of '08. When I accepted the other position with them, I in no way committed myself to the original agreement.

Their associate counsel states that since I was placed into a new position before my "termination" date of Sep 10th, that I was never really separated from employment with them. In my opinion, the termination letter from them, severance pay paid to me, and being walked out of the building that morning proves otherwise.

They are now threatening to take me to arbitration. Would the law/arbitration agree with me on this, or do I need to send them a check and move on?

[ecmst12]

I suspect you would lose arbitration. I agree with the company's position. But you can always take your agreement to a lawyer who can read it in full and provide an opinion (for a fee, of course).