Relocation Benefits

[mgriffin]

What is the name of your state (only U.S. law)? New York
I was promoted and given a relocation package to New York City effective 9/7/07. I was required to sign a disclosure that if I leave the organization voluntarily in under one (1) year, I am required to reimburse 100% of all relocation benefits. If I leave the organization after one (1) year, but less than two (2) years, I'm required to pay back 50% of the relocation benefits.

I would like to leave my organization after 9/7/08, which would protect me from tax issues; however, my concern is that the organization could come after me legally to reimburse me for 50% of the relocation benefit.

Is there anyway to avoid repaying 50% of the relocation benefit and/or what is the likelihood that the organization will pursue legal action to collect?What is the name of your state (only U.S. law)?

 

[Zigner]

Question: I agreed to pay back 50% of relocation expenses paid on my behalf if I left after more than 1 year but less than two years. Do I have to pay it?

Answer: Yes the company can seek reimbursement, as agreed to by you.

 

[LeeHarveyBlotto]

How likely they are to pursue the issue should you break your word is a crystal ball question.

How likely would they be in successfully suing? Very likely. As well they should be.

 

[Beth3]

Is there anyway to avoid repaying 50% of the relocation benefit I suppose you can stiff them and see what happens.

and/or what is the likelihood that the organization will pursue legal action to collect? Your guess is as good as mine.

If you do stiff them on the relocation bonus that you agreed to repay, you can anticipate that it will be mentioned in any references they're asked to provide down the road. Failing to live up to the agreement your employer made with you in good faith could easily have some negative consequences. I wouldn't hire someone who had done that as it would be a clear indication of poor character.

 

[tranquility]

To predict what they will do you have to look at the large picture and not just your situation. If it were just you, the expense of litigation (even when they have a slam-dunk winner--like here) might not make it worth it to the employer.

However, they have other like agreements with other employees and will have to ask themselves what the likelyhood of others breaching their agreements if the employer does not enforce the ones being breached now? That is your problem. If I were in charge I'd make sure you were dealt with and also make sure others know I will enforce the agreements made. That way I won't have to sue quite so much.

 

[cbg]

It's frightening how few people seem to be willing to stand by their word these days.

Why in heavens name do you think you should be excused from doing what you agreed IN WRITING to do? Don't you have any honor?

 

[VeronicaLodge]

of course if this persons employer had promise to reimburse him for relocation expenses and then he moved and submitted his expenses and they tried to get out of it, he would be here screaming about that.