What is the name of your state (only U.S. law)? Texas
I signed a retention bonus agreement with my current employer to stay 1 year. I was paid half ($5k) of it at the start of employment and was to be paid the other half ($5k) at six months.
I have now decided to leave the company after 4 months. The company is trying to get me to repay the whole $10k because they said it is stated in the agreement. Is this legal? To ask for repayment of more than they have paid?
Here is the language.
1. Retention Bonus. The company will pay the employee $10,000 less applicable taxes, in accordance with the following schedule:
1.1 Within 14 days after the effective date, employee will be paid the first half of the retention bonus (which equals $5,000), less applicable taxes.
1.2 Within 14 days after the date which is 6 months after the effective date, employee will be paid the second half of the retention bonus (which equals $5,000), less applicable taxes, provided that employee is then still employed by the company.
2. Payback Agreement
2.1 If the employee voluntarily terminates his employment with the company at any time within twelve (12) months after the effective date, employee will repay a pro rate portion of the retention bonus.
2.2 Such pro rata portion shall be calculated as follows: the result of 365 minus the number of days employee was employed by the company from the effective date forward, divided by 365, times $10,000.
I signed a retention bonus agreement with my current employer to stay 1 year. I was paid half ($5k) of it at the start of employment and was to be paid the other half ($5k) at six months.
I have now decided to leave the company after 4 months. The company is trying to get me to repay the whole $10k because they said it is stated in the agreement. Is this legal? To ask for repayment of more than they have paid?
Here is the language.
1. Retention Bonus. The company will pay the employee $10,000 less applicable taxes, in accordance with the following schedule:
1.1 Within 14 days after the effective date, employee will be paid the first half of the retention bonus (which equals $5,000), less applicable taxes.
1.2 Within 14 days after the date which is 6 months after the effective date, employee will be paid the second half of the retention bonus (which equals $5,000), less applicable taxes, provided that employee is then still employed by the company.
2. Payback Agreement
2.1 If the employee voluntarily terminates his employment with the company at any time within twelve (12) months after the effective date, employee will repay a pro rate portion of the retention bonus.
2.2 Such pro rata portion shall be calculated as follows: the result of 365 minus the number of days employee was employed by the company from the effective date forward, divided by 365, times $10,000.
