Sign on Bonus

Gillberg

New Member
Jurisdiction
Georgia
I started with a new company 3 weeks ago and was paid a sign on bonus. My old employer is trying to hire me back. There was not a term limit specified in my offer letter from my current employer. If I were to leave now and go back to my old employer, do I have to repay the sign on bonus if they were to ask for it to be returned?
 
If there was no written agreement, you might be okay unless they decide that you made this move fraudulently. And negotiated in bad faith... I will say personally I feel it unethical to keep it.
 
If there was no written agreement, you might be okay unless they decide that you made this move fraudulently. And negotiated in bad faith... I will say personally I feel it unethical to keep it.

I am ok paying back what I received after taxes. Nearly half was hit by federal and state income taxes, so I did not receive the stated amount upfront. The offer letter just stated the amount of the bonus and no stipulations, so if they request the bonus back and I offer what I received after taxes, is there any issues that could arise for the taxed portion that I cannot pay?
 
The larger the bonus is the more likely they will pursue you over it. After only 3 weeks I would expect they could make good arguments against you and that you would be responsible for the full amount before taxes.
 
I started with a new company 3 weeks ago and was paid a sign on bonus.

How much?

There was not a term limit specified in my offer letter from my current employer.

Maybe not, but there might be another gotcha in there that you aren't understanding. Post an image of the complete letter (redacting identifying information) so we can get a look at it.

You'll also need to examine any other paperwork that you signed when you "signed on" with the current employer.

I can't imagine an employer that wouldn't have a precaution in place in case a new employee just took the sign on bonus and left. There might also be an implied warranty that you stay on the job for a reasonable amount of time, the word "reasonable" being interpreted by a court of law.

I am ok paying back what I received after taxes. Nearly half was hit by federal and state income taxes, so I did not receive the stated amount upfront. The offer letter just stated the amount of the bonus and no stipulations, so if they request the bonus back and I offer what I received after taxes, is there any issues that could arise for the taxed portion that I cannot pay?

You pay back the whole thing and whatever was sent to the taxing authorities you get back at the end of the year or the employer gets to issue a withholding credit on his account.

The entire amount was INCOME. Returning it gets you a credit against income for that amount so you pay no tax on it.
 
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How much?



Maybe not, but there might be another gotcha in there that you aren't understanding. Post an image of the complete letter (redacting identifying information) so we can get a look at it.

You'll also need to examine any other paperwork that you signed when you "signed on" with the current employer.

I can't imagine an employer that wouldn't have a precaution in place in case a new employee just took the sign on bonus and left. There might also be an implied warranty that you stay on the job for a reasonable amount of time, the word "reasonable" being interpreted by a court of law.



You pay back the whole thing and whatever was sent to the taxing authorities you get back at the end of the year or the employer gets to issue a withholding credit on his account.

The entire amount was INCOME. Returning it gets you a credit against income for that amount so you pay no tax on it.

Here is a copy of what I was offered
 

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All that tells me is that, for $20,000, they will land on you with both feet if you leave with the money after three weeks. Garonteed.

Anyway, post the rest of the offer letter. I'm sure that there is more to it after that one section.
 
Since that was a summary I wonder if there is something else that you just do not remember signing. And yes for $20k, I would expect some legal action on their part.
 
Here is a copy of what I was offered

If your former employer wants you back desperately, he or she will gladly make the current employer whole to the tune of $20,000 and everyone lived happily ever after.
 
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