Tuition Reimbursement Repayment Obligation in Illinois

[kekil]

What is the name of your state? Illinois

Over a year ago, I signed a repayment obligation contract for repaying tuition reimbursement if I leave my employer within two years of the last tuititon reimbursement. My sister-in-law (in Arizona) tells me that I am not obligated to repay my employer if I leave before two years. The contract I signed makes it seem like I'm stuck here if I don't want to pay my employer back.

Anyone have any idea of the law concerning this issue in Illinois?

I have the text of my contract if you'd like. Just PM me.

 

[xylene]

What exactly is your sisters reasoning for claiming you can void the contract?

 

[kekil]

Sister-in-law's words

Here are my sister-in-law's words exactly, in an email to my wife:

There is really no legal way his company can force him to repay the school loan. I have several friends that have left their companies that had signed a contract like that and never had to pay it back because it is not really binding once you leave the company. But I guess if he wants to stay on good terms or even come back there some day, he should probably pay it back...

I'm assuming her friends' situations are in Arizona, but I am not sure.

 

[Silverplum]

Why wouldn't you repay them in the first place?
Do you think your company paid for your education just for fun?

 

[moburkes]

Why wouldn't you repay them in the first place?
Do you think your company paid for your education just for fun?

Let the sister answer the questions. Especially since, according to her, you can break a contract, which, apparently, voids it.

 

[kekil]

Are you saying that employers should always be repaid the reimbursed tuition when an employee leaves the company?

Actually, most employers pay for education/training for their own benefit. It's good for employee relations and retention. Some employers don't have any repayment obligation.

 

[Silverplum]

Let the sister answer the questions. Especially since, according to her, you can break a contract, which, apparently, voids it.

Word to Mo.
Which is also my answer to kekil.

 

[kekil]

Let the sister answer the questions. Especially since, according to her, you can break a contract, which, apparently, voids it.

I registered on freeadvice for this reason .. I'm checking her claims against what the freeadvice community has to say.

 

[Silverplum]

I registered on freeadvice for this reason .. I'm checking her claims against what the freeadvice community has to say.

So answer my questions from post #4.

 

[mlane58]

Are you saying that employers should always be repaid the reimbursed tuition when an employee leaves the company?

Yes when you sign an agreement to repay the tuition if you leave prior to the agreement ending. You signed a contract in exchange for the company providing monies to you to obtain an education.

Here are my sister-in-law's words exactly, in an email to my wife:
Quote:
There is really no legal way his company can force him to repay the school loan.

Your sister-in-law is soooooooooo wrong. The company can sue you to reclaim the monies owed. Sounds like your sister-in-law dosn't have a problem stealing from what ever company she works for---real nice work ethics.

 

[kekil]

Yes when you sign an agreement to repay the tuition if you leave prior to the agreement ending. You signed a contract in exchange for the company providing monies to you to obtain an education.

Your sister-in-law is soooooooooo wrong. The company can sue you to reclaim the monies owed. Sounds like your sister-in-law dosn't have a problem stealing from what ever company she works for---real nice work ethics.

I see where you are coming from, I do think it is not right to steal from your employer. But this isn't about my sister-in-law. In her quote (above), you see that she has friends that didn't have to pay back their reimbursements after they left their company(s), even though they signed a contract. Now I don't know the circumstances of her friends' departure from their companies, so it's hard to analyze. I'm just asking if there is indeed a loophole in this situation that voids the obligation. I'm not saying that I would reject a request from my company to pay back the tuition reimbursement .. I'm just asking if this is a legitimate contract and/or if Illinois says you don't have to pay back your employer upon departure.

 

[moburkes]

We don't know if the contract is valid. We can't see it. However, just because an employer chooses not to exercise its rights to recovery, doesn't mean that another employer won't exercise its rights to recovery.

 

[kekil]

However, just because an employer chooses not to exercise its rights to recovery, doesn't mean that another employer won't exercise its rights to recovery.

I think I see what you are saying. That the "friends" may have just gotten away lucky because their former employers chose not to pursue them. Not because the state doesn't allow legal recourse in this area or that there is a legal loophole that prohibits former employers from pursuing. Is that correct?

We don't know if the contract is valid. We can't see it.

Alrighty, here's a portion of the contract (maybe a third of it). I replaced my employer's name with "COMPANY".

_____________________________________, a staff member of COMPANY (“Staff Member”) (collectively the “Parties”), hereby voluntarily enter into this Agreement (“Agreement”) as of the date indicated below.
WHEREAS COMPANY has instituted an Employee Educational Assistance Program (as modified in COMPANY’s discretion from time to time, the “EEAP”) to provide tuition reimbursement for certain staff members under certain terms and conditions; and
WHEREAS Staff Member has sought assistance under the EEAP for tuition reimbursement (such tuition reimbursements, whether made in the past, now being made, or to be made in the future, being referred to as “EEAP Reimbursement(s)”); and
WHEREAS because of COMPANY’s need to ensure an adequate return on its investment in Staff Member’s education and development, as a precondition to any or further EEAP Reimbursements, COMPANY requires that in the event Staff Member terminates employment with COMPANY or any of its affiliates (other than pursuant to the COMPANY Corporation Severance Plan), Staff Member shall repay the EEAP Reimbursements as provided below; and
WHEREAS, Staff Member has knowingly and voluntarily agreed to the terms of this Agreement as a precondition to, and in consideration of receiving, any or further EEAP Reimbursements;
NOW, THEREFORE, STAFF MEMBER AND COMPANY AGREE AS FOLLOWS:
1. Repayment Obligation. In consideration of receiving tuition reimbursement from COMPANY under the EEAP, Staff Member agrees and promises that if Staff Member’s employment with COMPANY or its parents, affiliates or subsidiaries terminates for any reason within 24 months of participation in or completion of all or any part of a degree program for which Staff Member received reimbursement, Staff Member will repay COMPANY as set forth in subparagraphs (a) and (b) below. However, if Staff Member is notified that Staff Member’s employment is being terminated under the COMPANY Corporation Severance Plan, the repayment obligation will be waived.
(a) Staff Member will repay 75% of all EEAP Reimbursements made at any time to Staff Member by COMPANY if Staff Member’s employment with COMPANY or its parents, affiliates or subsidiaries terminates within 12 months of the last date on which any tuition was reimbursed to Staff Member by COMPANY under the EEAP.
(b) Staff Member will repay 50% of all EEAP Reimbursements made at any time to Staff Member by COMPANY if Staff Member’s employment with COMPANY or its parents, affiliates or subsidiaries terminates at any point between 12 months and 24 months of the last date on which any tuition was reimbursed to Staff Member by COMPANY under the EEAP.
As a matter of clarification, Staff Member understands and agrees that the EEAP Reimbursements which must be repaid INCLUDE without limitation any and all such tuition reimbursements made prior to, on, and after the date of this Agreement.
2. Payment of Obligation. Staff Member agrees to repay COMPANY the full amount due, as calculated pursuant to paragraph 1 above, on or before the last day worked and in any event within sixty (60) days of Staff Member’s termination of employment unless COMPANY agrees at its sole option and in writing to a different schedule for repayment.

 

[xylene]

I wouldn't sign that.

I basically says they expect you to pay if you are no longer a employee, even if they discharge you...

Thats not a good deal.

 

[mlane58]

I wouldn't sign that.

I basically says they expect you to pay if you are no longer a employee, even if they discharge you...

Thats not a good deal.

Too late, the OP already stated that they did and it looks pretty standard tuition reimbursement.