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  1. #1
    Join Date
    Jun 2013
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    Default Repayment of Relocation Costs to Ex-Employer

    My question involves labor and employment law for the state of: South Carolina
    I was hired for a new job in SC where I had to move, the company offered me an annual salary and they also offered some relocation money which I had to sign a letter that I would have to repay this if I departed them within the first year. Four months into my employment the initiated a 20% percent pay reduction to my salary because of the government sequester. I found another job and resigned and they now want me to repay them, can they legally make me pay this back?

  2. #2
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    Jun 2006
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    Massachusetts
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    Default Re: Repayment of Relocation Costs to Ex-Employer

    When you showed the letter you signed to a SC attorney, what did the attorney say?

  3. #3
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    Mar 2013
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    Default Re: Repayment of Relocation Costs to Ex-Employer

    Quote Quoting fawkerslane
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    My question involves labor and employment law for the state of: South Carolina
    I was hired for a new job in SC where I had to move, the company offered me an annual salary and they also offered some relocation money which I had to sign a letter that I would have to repay this if I departed them within the first year. Four months into my employment the initiated a 20% percent pay reduction to my salary because of the government sequester. I found another job and resigned and they now want me to repay them, can they legally make me pay this back?
    Depends entirely on the terms and conditions specified in the contract that you signed.

    Generally, though, contracts for the return of relocation money are enforceable.

    A 20% salary reduction might give you a defense.

    You can post the full text of the letter you signed and see if we can give any helpful comments.

    Or you can take it to a lawyer for evaluation.

  4. #4
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    Jun 2013
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    5

    Default Re: Repayment of Relocation Costs to Ex-Employer

    Here is the text of the letter I signed when I was hired, any additional comments/ideas?

    "The allowable travel and moving expenses authorized by Savannah River Nuclear Solutions (SRNS) in connection with the enclosed offer are considered to be an advance to you. If applicable, SRNS as your agent will arrange, as part of the advance, the carrier for moving your household goods from your present residence to the Central Savannah River Area. Additional expenses as authorized will be advanced after your arrival upon submission of and approved expense report.

    Repayment by you of any advances made pursuant to this offer of employment will not be required, except that, if you terminate voluntarily or are discharged due to falsification of employment information, or as a result of violating the Savannah River Nuclear Solutions Substance Abuse Program within 12 months from your payroll start date. Savannah River Nuclear Solutions will offset the amounts of moving, transportation and other personal expenses advanced here under against any sums due you at the time of termination and, upon written demand by SRNS, you will repay the amount by such advanced may exceed sums due you. In the event sums owed to SRNS are not paid on the date of written demand by SRNS, you will agree to enter into a legally binding repayment schedule on terms satisfactory to Savannah River Nuclear Solutions. Sums due to SRNS under this provision shall bear interest from the date of written demand until paid unless paid within 30 days of the date of written demand. Request for reimbursement of relocation expenses must be submitted with 90 days from the dates the expenses are incurred.

    In addition, Savannah River Nuclear Solutions expressly reserves the right to make deductions from your paycheck for any relocation and moving expenses that are paid pursuant to any incorrect, inaccurate or fraudulent information regardless of when the company discovers the errors or fraud."

  5. #5
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    Default Re: Repayment of Relocation Costs to Ex-Employer

    Looks like you're on the hook for this.

  6. #6
    Join Date
    Jun 2013
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    5

    Default Re: Repayment of Relocation Costs to Ex-Employer

    Evem with a 20% pay cut? What if was 50%?

  7. #7
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    Default Re: Repayment of Relocation Costs to Ex-Employer

    I don't see anything in there that excuses you from repayment if you quit because of a salary cut. Do you?

  8. #8
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    Florida
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    Default Re: Repayment of Relocation Costs to Ex-Employer

    If the company breached the terms of its offer of employment then this very well might not be enforceable. If I hire someone as a computer engineer for $100k a year and then reclassify them as a janitor for $20k a year that might well be a breach of the offer of employment and all bets might then be off, but only a SC employment attorney can adequately advise you. It'd be worth taking the employment agreement and this relocation agreement to one and pay for an hour's consultation.

    - - - Updated - - -

    Quote Quoting cbg
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    I don't see anything in there that excuses you from repayment if you quit because of a salary cut. Do you?
    A breach of the terms of the agreement to accept employment may well excuse repayment. We can't see the terms of the employment agreement or whether the agreement allows for the employer to modify the terms of employment unilaterally. The employer could be in breach of contract unless the employer has in the contract a contractual right to vary the terms and conditions of the contract.

    Here are the elements of a fraudulent inducement:

    1. The company made an intentional action, statement, or omission that amounted to a misrepresentation of a material fact (We will pay you $100k a year to do xyz job).
    2. The misrepresentation was material to the decision to enter into a contract (I will work for you, but only if you pay me $100k a year)

    3. The employee reasonably relied on such misrepresentation (Yeah, $100k is enough to induce me to relocate and accept the terms of your repayment requirement if I leave early), and

    4. The employee suffered some degree of injury, usually economic harm (you mean I don't get $100k a year?)

  9. #9
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    Massachusetts
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    Default Re: Repayment of Relocation Costs to Ex-Employer

    According to the poster, this IS the text of the letter he signed. Nowhere does he say there was any other contract, or that there is any part of the letter referring to the terms of his employment or that ties the agreement to repay to any particular wage.

  10. #10
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    Mar 2013
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    Default Re: Repayment of Relocation Costs to Ex-Employer

    Quote Quoting fawkerslane
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    Evem with a 20% pay cut? What if was 50%?
    It wasn't 50%, it was 20%, so let's not waste time on "what ifs."

    I think that, regardless of any other agreement or lack of agreement, if the company's action (reducing your salary) compelled you to breach the contract (when you wouldn't have quit otherwise), then you might have a defense against paying it back.

    I'm not making any guarantees here, just suggesting that it's a factor you'll want to explore with an attorney.

    If there's enough money involved it might be worth the cost of getting an attorney to advise them of the error of their ways.

    Your other alternative is to just say no and see what they do. Your choice.

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