The contract I signed for my current job included a standard sign-on bonus repayment clause - if I voluntarily left company X after working there for less than 1 year, I would have to repay a pro-rated amount of my sign-on bonus. Shortly after I started working there, company X was acquired by another company, and is now company Y. Does this give legal justification for not repaying the bonus?
Repayment of sign-on bonus following an acquisition
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army judge
Super Moderator
No.
When company A acquired company X, it acquired all its assets and liabilities.
It also acquired and must honor its contracts.
It could choose to hold you to your end of that contract, should you leave before the year has passed.
army judge
Super Moderator
Many times companies use that standard language in contracts.
But, they rarely go after people who breach the contract (if the amount is inconsequential).
I've seen folks walk away with $25,000 signing bonuses after four, five months.
In many states, they can't even withhold it from your last paycheck, without specific written authorization on your part.
Thanks, good to know - I'm hoping they don't hold me too it. I'd be on the hook for about $5K (got $10K about 6 months ago).
cbg
Super Moderator
And I've seen companies sue for the unpaid pro-rated portion. No way to guarantee which way it would go.
army judge
Super Moderator
If you sneak quietly away, you may not be noticed.
It also pays to keep your mouth shut.
But, you also have to be careful about burning bridges.
I hope everything works out well for you.
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