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  1. #1
    Join Date
    Jun 2011
    Posts
    3

    Default Employer Delayed Sign-on Bonus - Need I Repay

    My question involves employment and labor law for the state of: Michigan

    Hello,

    My sign-on bonus agreement that I signed with my employer says that the employer should pay me 100% of the bonus amount on or around 30 days post hire.
    It also says that if I leave the company within 24 months, I would have to repay it back.

    However, the employer did not pay it on or around 30 days post hire. I repeatedly questioned them about it, and the HR department did not seem to know why it was not paid. They asked me three times to re-sign the same sign-on bonus agreement and fax it over to different HR people. Finally they paid it 8 months after hire.

    I quit the job after 12 months of hire. Now they are asking me to repay them the sign-on bonus? My question is - Is that agreement still valid as they did not keep their part of the deal in paying me "on or around 30 days post hire?" Do I need to repay this sign-on bonus to them?

    Any advice would be appreciated.
    Thanks.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Employer Delayed Sign-on Bonus - Need I Repay

    If you want to argue the agreement isn't valid, then you owe them the bonus because you did not have an agreement other than the one where they were to pay you around 30 days post employment. So, whether you argue the agreement isn't valid or you did not stay the agreed upon time, you owe them the bonus money.

  3. #3
    Join Date
    Jun 2011
    Posts
    3

    Default Re: Employer Delayed Sign-on Bonus - Need I Repay

    Thanks for your reply but I do not understand why I would owe the company the bonus, if my argument that the agreement is invalidated by the company's actions is a correct one. If, as I argue, the agreement is invalid, then there is no agreement about a sign-on bonus, hence there is no valid agreement to repay the sign-on bonus. Why would I owe them in that case?

    Note that there was no contract for me to actually stay for 24 months. The "sign-on bonus agreement" only stated that I would have to repay the "sign-on bonus" if I left in 24 months - however I argue that they invalidated it by not paying me the bonus in the time they said they would pay it in the same agreement.

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Employer Delayed Sign-on Bonus - Need I Repay

    If the agreement was invalid, you had no right to be paid a bonus at all so, give them back the money you were not owed (the bonus) that you continually asked for until they paid it believing it was the sign on bonus in the agreement.

    The delay of payment does not void the agreement.

    The "sign-on bonus agreement" only stated that I would have to repay the "sign-on bonus" if I left in 24 months
    that is a contract. Since you want to argue that contract is invalid, give them back the money you were paid under that contract. Not because you left before 24 months had run but if that agreement is invalid, you had no agreement in which you were owed a sign on bonus at all.

  5. #5
    Join Date
    Jun 2011
    Posts
    3

    Default Re: Employer Delayed Sign-on Bonus - Need I Repay

    All right, thank you for your opinion and advice. I will be returning the amount, but will keep all this in mind for the future.

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