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Training Fee Agreement? Just Fired....

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What is the name of your state? CA / AZ

I was working for a company in CA (1.5 years with company) and just moved to AZ (2 months ago). I kept my job and was working from my house, but was fired for not agreeing to a new reporting structure that included a clause that stated, "Failure to report once per week will result in a 20% reduction of commission for that month."

I am not upset about being fired....but have a question on the agreement below that I signed when I started employment.

IS this enforceable? The way I read it says if the employee LEAVES for any reason then I would have to pay. I was fired...I did not quit.
What does everyone else think?

Training Fee Summary Agreement
( Sales & Marketing Positions ):
This is an agreement by and between “COMPANY A”, Inc. and ___EMPLOYEE___, that states the following:
While being employed with “COMPANY A”,______EMPLOYEE___ will be trained in certain aspects of a wholesale business that have been developed over the years by “COMPANY A” at a substantial cost both in time and in money. It is agreed that the above has a value and therefore should ___EMPLOYEE____ leave “COMPANY A” for any reason and decide to go into a similar field ( wholesale distribution of same/similar products as “COMPANY A” ) then ___EMPLOYEE____ will agree to pay “COMPANY A” $50,000.00 prior to employment, partnership or sole proprietorship for it's training , due and payable on the first date of entering the industry, the debt will also be the responsibility of the new employer as well. If ____EMPLOYEE____ decides to enter this field after 24 months from the date of departure with “COMPANY A” then the training fee will be waived.

I have read the above and agree and acknowledge to all the terms and conditions.
Signed _EMPLOYEE___

I am planning on starting my own company (doing the same thing) and am trying to figure out if this is a liability for me.

Thanks again everyone....this is one of the best websites out there that really helps people.



Senior Member
It's quite clear that "leaves for any reason" in the document means just that - ANY reason. Doesn't matter if you quit, were fired, laid-off, etc.

The larger question is whether this document is enforceable at all. I'm not an attorney but I certainly think that aspects of the agreement are unenforceable - such as the statement that the debt will be the responsibilty of the new employer as well. That's absolutely ridiculous. Neither your former employer nor you can bind a hypothetical future employer in any way.

I suspect the document is little more than a scare tactic but you'll need a qualified attorney practicing in your State to review the agreement and advise you.


Thanks Beth for the response. And I agree with what you said. But since I was forced to leave, shouldn't I have a right to use my skills somewhere else? Also would this be a CA issue or AZ were I currently live?

"....agree to pay “COMPANY A” $50,000.00 prior to employment, partnership or sole proprietorship for it's training...."

If I start an LLC does this agreement still apply? From what I understand (and I could be wrong) I am not an employee of my own LLC. I am a Member and/or Manager.

Thanks again for the help.



Senior Member
Blue, you NEED to see an attorney to get these questions answered, as the answers lie in the applicable State's case law.

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