no quit clause

[msteffke]

My son accepted a summer collegiate intership with a Collegiate Painting co in our state of residence, Michigan. The problem is he has a "no quit clause" stating a $500.00 fine for quitting in his employee handbook. He has quit because his superior has had him shave hours off of the payroll records and pay his crew "out of his pocket". This is a weekly practice to stay on budget. Is this clause enforcable by the employer if the reason for quitting is questionable bussiness practices?

 

[loku]

No, the clause is not enforceable in this situation. The practice is not only a questionable business practice, but it is also illegal unless he actually reports the pay as income to the IRS and to the state. The courts will not enforce the clause under those conditions.