Corporate Bonus Repayment

[AppleCello]

Has anyone had an experience where upon joining the Navy or any other branch of the military, a corporate employer would not waive an agreement to repay a sign-on bonus?

Essentially the way the case breaks down, I was given a bonus (intended for moving expenses and setting up just out of college) when I signed a job offer with my corporate employer. After 1 year's time spent with the company, only 50% was owed back. After 2 years, nothing is owed back.

Right now I'm within a couple months of owing nothing according to the original agreement but the company wont budge on the issue even considering that I'm not leaving for a competitor and instead joining the Navy.

Now, I know that this sort of repayment agreement has been struck down before on grounds of involuntary servitude and penalty for breach of contract, but do any of you know of particular provisions that apply to a situation like this where military service is involved?

In the end, this isn't going to break me but it sure is inconvenient and poses some minor difficulties in the short term. But it would be nice to make the company stick to the intent and purpose of their quasi-legal agreements and not use it to unnecessarily penalize someone.

 

[kmac]

You're voluntarily joining the service, are you not? That's no different than leaving for another company. Of course this is my opinion, and does not constitue legal advice.

 

[Brett327]

Has anyone had an experience where upon joining the Navy or any other branch of the military, a corporate employer would not waive an agreement to repay a sign-on bonus?

Essentially the way the case breaks down, I was given a bonus (intended for moving expenses and setting up just out of college) when I signed a job offer with my corporate employer. After 1 year's time spent with the company, only 50% was owed back. After 2 years, nothing is owed back.

Right now I'm within a couple months of owing nothing according to the original agreement but the company wont budge on the issue even considering that I'm not leaving for a competitor and instead joining the Navy.

Now, I know that this sort of repayment agreement has been struck down before on grounds of involuntary servitude and penalty for breach of contract, but do any of you know of particular provisions that apply to a situation like this where military service is involved?

Who's the one breaching the contract here? You're the one leaving early here and your employer is within his rights to enforce the contract which you voluntarily entered into (involuntary servitude? Give me a break). Now whether or not there are provisions to prorate for service between those 1 and 2 year benchmarks, you're probably going to have to negotiate that issue, but let's not make it out as though your employer is the bad guy. They gave you money in exchange for a certain commitment which you are now breaking.

Brett

 

[AppleCello]

Kmac I get your point. So do you also feel that lease agreements signed by current military personnel or recruits should also be upheld? Thats essentially my line of thinking on this.

edit-
Brett you are right and I agree with you that I agreed to the provisions in the contract. In the end, if I have to pay it I will and I'm not going to make a huge deal about it. But if there is a provision to deal with this, then I will make use of it. Just doing my homework.

 

[Brett327]

Kmac I get your point. So do you also feel that lease agreements signed by current military personnel or recruits should also be upheld? Thats essentially my line of thinking on this.

Apples and oranges. Breaking a lease because of an essentially involuntary requirement of military service is not the same as what you're doing.

Brett

 

[kmac]

And, I doubt your company has a "military clause" (such as found in lease agreements) for breaking your commitment (thanks to the signing bonus) unless of course you were drafted; you were not drafted.

 

[Junior]

That is why you sign a lease agreement which has a military clause in it. People who rent from places without a military clause get screwed when move time comes.

edit: Way late

 

[kmac]

That is why you sign a lease agreement which has a military clause in it. People who rent from places without a military clause get screwed when move time comes.

edit: Way late

I am SDO today. I have nothing better to do than surf Airwarriors continuously.

 

[ChuckMK23]

If I were you I would just leave your employer and not address the matter - then see if they choose to sue. My experience with those clauses is it's rarely, if ever, enforcable - or even worth the effort to pursue litigation over.

As a youngster out of college I'm guessing it's some amount under $10K - I doubt very much it would ever be an issue.

Simply resign, don't discuss the issue if your employer brings it up - and get on with life in the Navy .

 

[Brett327]

If I were you I would just leave your employer and not address the matter - then see if they choose to sue. My experience with those clauses is it's rarely, if ever, enforcable - or even worth the effort to pursue litigation over.

As a youngster out of college I'm guessing it's some amount under $10K - I doubt very much it would ever be an issue.

Simply resign, don't discuss the issue if your employer brings it up - and get on with life in the Navy .

Oh, yeah. That's the moral thing to do. Whatever happened to living up to the agreements you enter into? Why should his employer get stuck with the short end of the stick? Your recommendation is, as usual, irresponsible and ill advised.

Brett

 

[Sabre170]

It may be too late now, but try to move your active duty date back a few months so you can finish your contract.

 

[AppleCello]

no worries. I paid it as they asked and I'm done with them. I was hoping that they would at least prorate it for the time not worked, but they wouldn't. Regardless of whats 'right' or 'wrong' in this case, it simply isn't worth worrying about. In the end, its just better not to get involved in a contract agreement that leaves little room for maneuver.

 

[Brett327]

no worries. I paid it as they asked and I'm done with them. I was hoping that they would at least prorate it for the time not worked, but they wouldn't. Regardless of whats 'right' or 'wrong' in this case, it simply isn't worth worrying about. In the end, its just better not to get involved in a contract agreement that leaves little room for maneuver.

Good for you. Out of curiosity, what did they make you repay - the entire second year's worth?

Brett

 

[ChuckMK23]

Oh, yeah. That's the moral thing to do. Whatever happened to living up to the agreements you enter into? Why should his employer get stuck with the short end of the stick? Your recommendation is, as usual, irresponsible and ill advised.

Brett

I wish Brett you would not be so quick to judge i Think your comments are unfair.

In the 12 years since I've left Active Duty I've worked for two Fortune 100 companies and a 4 year stint with a a global IT consulting firm. My comments and advice to our young froiend here still stand. It has nothing to do with honor,or personal integrity, or being honest (or dishonest)

It's just business! And the scenario and my advice given in response are not even remotely unusual or by any standard incorrect in normal business climate. I've experienced both sides first hand and have plenty of colleagues who have as well.

I wish the world at large was as black and white as when I was on active duty. It is not.

 

[Brett327]

I wish Brett you would not be so quick to judge i Think your comments are unfair.

In the 12 years since I've left Active Duty I've worked for two Fortune 100 companies and a 4 year stint with a a global IT consulting firm. My comments and advice to our young froiend here still stand. It has nothing to do with honor,or personal integrity, or being honest (or dishonest)

It's just business! And the scenario and my advice given in response are not even remotely unusual or by any standard incorrect in normal business climate. I've experienced both sides first hand and have plenty of colleagues who have as well.

I wish the world at large was as black and white as when I was on active duty. It is not.

Oh, so now the business world is the standard of ethics? Keep digging, Chuck. My quickness to judge you comes after > 2 years of reading your mostly absurd, illogical posts. I don't care that the "real world" will let people get away with. If you sign your name to a contract in good faith, you should live up to your end of the bargain. If the tables were turned and corporation X was trying to weasel out of a contractual obligation to screw a servicemember out of a couple thousand dollars, people would be calling 60 Minutes and the NY Times.

It's a matter of personal responsibility - one which the OP had the integrity to live up to.

Brett