Repaying a Second Year Hiring Bonus

[Frederic_Doss]

I received a two part sign on bonus from a company here in Texas. Basically the contract states that I would get $15K to start, but if I left within the first year, I would have to pay back a prorated amount.

In addition, I would be given $10K at the beginning of my second year, but if I left within the second year, I would have to pay back a prorated amount.

I made it through my first year with the company and was not sure whether I would make it through a second year. However, I felt somewhat coerced to take the second bonus or basically declare my intent to not stay with the company and risk being singled out for termination or passed over for opportunities.

About 2 months into my second year, I have received an opportunity that I cannot bring myself to refuse. If the company asks for the prorated amount back, what recourse do I have?

Keep in mind that I only saw $6,000 hit my bank account after taxes. I figure a prorated amount of that is around $8300.

 

[Patricia_Young]

Net is irrelevant. You signed an agreement. You're welcome to take it to a local attorney for review, since the devil is in the details of such agreements, but I would not be surprised if this is a valid contractual obligation.

"Coerced to accept a bonus"? Sorry, I'm not able to generate a whole lot of sympathy here.

 

[army judge]

I've observed that companies rarely go after people to recover small amounts. The contracts are crafted to cover a myriad of situations.

If you had a six figure (or more) bonus, they might come after you. It would cost them $10-20,000 to retain counsel to recover $15,000. It doesn't make financial sense. If you wanna leave, go. I doubt they'll pursue you.

Besides, in Texas, enforcing a judgment is almost impossible. In Texas, your wages can't be levied against.

 

[Patricia_Young]

Maybe they will pursue it if you leave prematurely, and maybe they won't. Are you ready to take that chance?