Q. Can we require an employee to sign an agreement to reimburse the company for half the expenses related to training, if the employee resigns within six months? —S.D., Northern Marianas
A. Although there appear to be no federal regulations on this point and very little case law, you may be able to recover training costs from employees under certain circumstances. You must, however, make sure that payments do not reduce the employee's pay below minimum wage.
In addition to complying with applicable state law:
- Have an accurate idea of training costs and be able to back up your estimates with documentation.
- If the amount to be repaid is estimated, make sure the figure is reasonable. An unreasonable amount may be construed as a penalty and, thus, be unenforceable.
- Limit the time the employee is expected to stay to the time necessary to recoup the training investment.
- Show that the employee was not coerced into signing the agreement, by giving him ample time to consider the agreement and by including a clause stating that the parties entered into the agreement knowingly and freely.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/1536/recover-training-costs "
- Employee documents: When to store, when to shred
- Beware schedule changes that lower pay! They could trigger discrimination lawsuits
- Avoid equal pay suit by comparing employees' duties, not titles
- Despite EPA's gender-equity requirements, you do have discretion to set wide salary
- Must we pay instructor for time between classes?