Employee quits after sign on bonus

[prettyp]

An Employee was hired 8 months ago as GM of a store. The employee was advanced a 7,000 bonus with an "At Will" contract that stated that he she would be here for one year. The $7,000 bonus would have raised the salary from 35,000 to 42,000. The last month the employee was working, he/she took a 10 day leave and sick days. After this, the employee resigned. The 7,000 bonus was for one year. Now the employee is demanding the last 2 weeks of his/hers paycheck. Does the employer have to pay him/her? Considering the year was not completed ,and in fact the employee owes the employer the monies for the month that he or she did not work which were paid to the employee in the up-front bonus.

 

[Peppermint]

Did the "advanced bonus" include a requirement that it be paid back if the employee resigned before being employed one year, either if full or pro-rated? Was it a sign-on bonus or was it a salary advance? Did the employee sign something to that effect?

Did you pay the employee for the 10 days leave/sick? If so, what did the employee understand that pay was? Paid time off or a salary advance?

BTW, an "at will" contract that requires the employee work for a specified period of time generally makes the employee not "at will" at all.

 

[prettyp]

Thank You Peppermint for your response. It was a salary advance. The employee wanted a 42,000 salary. So the employer gave the employee a 7,000 advance to cover the yearly salary requirements the employee wanted. Nowhere in the contract is there a stipulation for a pay-back. However, the contract states the yearly sum to be 35,000. The 7,000 in other words was additional to cover the employee's salary request.

And yes, the employees 10 day leave was paid time off. This employee also took a week previous to that in December as well that was paid leave.

 

[Peppermint]

I don't see any out for you to not pay the wages earned for the last two weeks. Without a repayment agreement for the "advance" and without any stipulation as to the time off paid (but, assumedly, as yet unearned) being an advance, you're almost certainly SOL. If the employee files either a wage claim with the federal DOL or a law suit in the Florida courts (either is an option) for his final wages, he's going to win. IMHO, pay the outstanding wages due and learn some lessons.

1. If you want to give an "advance", make sure you have a valid agreement for its repayment, if that's what you expect.
2. Don't provide paid time off to an employee who hasn't earned it.
3. If you want to offer a bona fide contract, have an attorney vet it first.

 

[prettyp]

Thank You again for your prompt response. Lesson learned.....