Virginia employer terminated employee and wants signing bonus returned
A Virginia employee was terminated within 1 year of hiring because the on-site customer felt he was "too negative". Offer Letter:
Along with this offer, you are receiving a $10,000.00 signing bonus, which includes $3,000.00 to be paid directly to you in your first company paycheck and the remaining $7,000.00 to be paid to you at 30 days of employment with xxxxx. A 1−year commitment required or the bonus will be repaid in full to xxxxx.
Can the employer legally keep the employee's last check and send the employee a bill for the remainder ?
employment virginia
New contributor
add a comment |
A Virginia employee was terminated within 1 year of hiring because the on-site customer felt he was "too negative". Offer Letter:
Along with this offer, you are receiving a $10,000.00 signing bonus, which includes $3,000.00 to be paid directly to you in your first company paycheck and the remaining $7,000.00 to be paid to you at 30 days of employment with xxxxx. A 1−year commitment required or the bonus will be repaid in full to xxxxx.
Can the employer legally keep the employee's last check and send the employee a bill for the remainder ?
employment virginia
New contributor
Was there any other language about the 'bonus" in the letter or in any contract of employment?
– David Siegel
9 hours ago
That was the paragraph pertaining to the signing bonus. It appears to be very simple. At-will employee was involuntarily terminated.
– jlo-gmail
8 hours ago
1
In South Carolina, employers can be liable for triple ("treble") damages for unpaid wages. Virginia might, too (it's worth checking). So there could be more at risk if they think they'll hold back the pay and sort it out later.
– donjuedo
1 hour ago
Also, in some jurisdictions, failing to pay wages caries criminal liability for the manger(s) or responsible person(s), in addition to the civil liability for the company mentioned by @donjuedo. I'm not familiar with Virginia's laws in this regard. For those reading this question, the details of labor laws vary significantly from state to state (and, obviously, country to country). You are best off seeking advise from a lawyer familiar with labor law in your jurisdiction. Depending on the jurisdiction, there may be a government agency which will advocate for you with minimal/no cost/paperwork.
– Makyen
1 hour ago
add a comment |
A Virginia employee was terminated within 1 year of hiring because the on-site customer felt he was "too negative". Offer Letter:
Along with this offer, you are receiving a $10,000.00 signing bonus, which includes $3,000.00 to be paid directly to you in your first company paycheck and the remaining $7,000.00 to be paid to you at 30 days of employment with xxxxx. A 1−year commitment required or the bonus will be repaid in full to xxxxx.
Can the employer legally keep the employee's last check and send the employee a bill for the remainder ?
employment virginia
New contributor
A Virginia employee was terminated within 1 year of hiring because the on-site customer felt he was "too negative". Offer Letter:
Along with this offer, you are receiving a $10,000.00 signing bonus, which includes $3,000.00 to be paid directly to you in your first company paycheck and the remaining $7,000.00 to be paid to you at 30 days of employment with xxxxx. A 1−year commitment required or the bonus will be repaid in full to xxxxx.
Can the employer legally keep the employee's last check and send the employee a bill for the remainder ?
employment virginia
employment virginia
New contributor
New contributor
edited 8 hours ago
jlo-gmail
New contributor
asked 9 hours ago
jlo-gmailjlo-gmail
1362
1362
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New contributor
Was there any other language about the 'bonus" in the letter or in any contract of employment?
– David Siegel
9 hours ago
That was the paragraph pertaining to the signing bonus. It appears to be very simple. At-will employee was involuntarily terminated.
– jlo-gmail
8 hours ago
1
In South Carolina, employers can be liable for triple ("treble") damages for unpaid wages. Virginia might, too (it's worth checking). So there could be more at risk if they think they'll hold back the pay and sort it out later.
– donjuedo
1 hour ago
Also, in some jurisdictions, failing to pay wages caries criminal liability for the manger(s) or responsible person(s), in addition to the civil liability for the company mentioned by @donjuedo. I'm not familiar with Virginia's laws in this regard. For those reading this question, the details of labor laws vary significantly from state to state (and, obviously, country to country). You are best off seeking advise from a lawyer familiar with labor law in your jurisdiction. Depending on the jurisdiction, there may be a government agency which will advocate for you with minimal/no cost/paperwork.
– Makyen
1 hour ago
add a comment |
Was there any other language about the 'bonus" in the letter or in any contract of employment?
– David Siegel
9 hours ago
That was the paragraph pertaining to the signing bonus. It appears to be very simple. At-will employee was involuntarily terminated.
– jlo-gmail
8 hours ago
1
In South Carolina, employers can be liable for triple ("treble") damages for unpaid wages. Virginia might, too (it's worth checking). So there could be more at risk if they think they'll hold back the pay and sort it out later.
– donjuedo
1 hour ago
Also, in some jurisdictions, failing to pay wages caries criminal liability for the manger(s) or responsible person(s), in addition to the civil liability for the company mentioned by @donjuedo. I'm not familiar with Virginia's laws in this regard. For those reading this question, the details of labor laws vary significantly from state to state (and, obviously, country to country). You are best off seeking advise from a lawyer familiar with labor law in your jurisdiction. Depending on the jurisdiction, there may be a government agency which will advocate for you with minimal/no cost/paperwork.
– Makyen
1 hour ago
Was there any other language about the 'bonus" in the letter or in any contract of employment?
– David Siegel
9 hours ago
Was there any other language about the 'bonus" in the letter or in any contract of employment?
– David Siegel
9 hours ago
That was the paragraph pertaining to the signing bonus. It appears to be very simple. At-will employee was involuntarily terminated.
– jlo-gmail
8 hours ago
That was the paragraph pertaining to the signing bonus. It appears to be very simple. At-will employee was involuntarily terminated.
– jlo-gmail
8 hours ago
1
1
In South Carolina, employers can be liable for triple ("treble") damages for unpaid wages. Virginia might, too (it's worth checking). So there could be more at risk if they think they'll hold back the pay and sort it out later.
– donjuedo
1 hour ago
In South Carolina, employers can be liable for triple ("treble") damages for unpaid wages. Virginia might, too (it's worth checking). So there could be more at risk if they think they'll hold back the pay and sort it out later.
– donjuedo
1 hour ago
Also, in some jurisdictions, failing to pay wages caries criminal liability for the manger(s) or responsible person(s), in addition to the civil liability for the company mentioned by @donjuedo. I'm not familiar with Virginia's laws in this regard. For those reading this question, the details of labor laws vary significantly from state to state (and, obviously, country to country). You are best off seeking advise from a lawyer familiar with labor law in your jurisdiction. Depending on the jurisdiction, there may be a government agency which will advocate for you with minimal/no cost/paperwork.
– Makyen
1 hour ago
Also, in some jurisdictions, failing to pay wages caries criminal liability for the manger(s) or responsible person(s), in addition to the civil liability for the company mentioned by @donjuedo. I'm not familiar with Virginia's laws in this regard. For those reading this question, the details of labor laws vary significantly from state to state (and, obviously, country to country). You are best off seeking advise from a lawyer familiar with labor law in your jurisdiction. Depending on the jurisdiction, there may be a government agency which will advocate for you with minimal/no cost/paperwork.
– Makyen
1 hour ago
add a comment |
3 Answers
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Virginia employer terminated employee and wants signing bonus returned
Can the employer legally keep his last check and send the employee a bill for the remainder ?
No, unless (1) the employee resigned and (2) his resignation does not amount to constructive termination. The employer may withhold the remaining $7,000 only if the employee did not meet the condition of "30 days of employment with xxxxx".
Absent any language to the contrary, the requirement of "1-year commitment" is to be construed as the consideration expected from the employee (namely, "not to quit") in exchange for the bonus. Termination by the employer is self-defeating in the sense the employer himself made it impossible for the employee to fulfill the consideration that was expected from the employee. Therefore, the employer forfeits his entitlement to reimbursement.
In the event that the employee met the condition of "30 days of employment with xxxxx", he would be entitled to the remaining $7,000 as well.
add a comment |
Since the employee made a 1-year commitment, and did not quit within the year, I see no justification for the claw-back of the signing bonus. If the letter had said "you must remain employed for one year or the bonus will be repaid" that would be different.
However, before seriously considering a suit, you will want to consult an emplyment lawyer. You may want to do so before sending a communication insisting that your final payceck be paid in full.
add a comment |
In my opinion, the sentence is a bit ambiguous. I'd lean toward agreeing that the employee kept their commitment, so termination might not apply. But, the problem with that is an employee could intentionally act in ways causing themselves to be terminated to keep the bonus. (Not saying that's what happened here.) If the judge felt it was ambiguous, like many legal issues, all that matters is which judge you get and how they rule, and no definitive answer can truly be given. You could argue the offer letter was a contract of adhesion, which means it was a standard contract and you were in a take it or leave it position. If that flies, ambiguities are generally resolved in favor against the writer of the contract. The employer would likely counter-argue their employment offer was up for negotiation, differentiating it from terms and conditions you have no negotiation power over, like between (non-extremely-rich) people and banks.
Some states have restrictions on last checks. I have no idea what, if any, Virginia laws apply to them. If you got lucky, maybe Virginia's law requires the last paycheck to be paid in full. (I have no reason to believe this is the case; all I am saying is that it should be researched.) If the judge feels the sentence applied to the situation requires the bonus be paid back, they might need to pay the last paycheck and separately attempt to collect from (including suing) the employee. Virginia may or may not have penalties for failing to give a proper last paycheck. If such penalties exist, whether they go to the state or the employee is a separate issue, again resolved through research.
As David Siegel said, definitely consult an employment lawyer, before doing anything. In my opinion, actually consult with 2-3.
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3 Answers
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Virginia employer terminated employee and wants signing bonus returned
Can the employer legally keep his last check and send the employee a bill for the remainder ?
No, unless (1) the employee resigned and (2) his resignation does not amount to constructive termination. The employer may withhold the remaining $7,000 only if the employee did not meet the condition of "30 days of employment with xxxxx".
Absent any language to the contrary, the requirement of "1-year commitment" is to be construed as the consideration expected from the employee (namely, "not to quit") in exchange for the bonus. Termination by the employer is self-defeating in the sense the employer himself made it impossible for the employee to fulfill the consideration that was expected from the employee. Therefore, the employer forfeits his entitlement to reimbursement.
In the event that the employee met the condition of "30 days of employment with xxxxx", he would be entitled to the remaining $7,000 as well.
add a comment |
Virginia employer terminated employee and wants signing bonus returned
Can the employer legally keep his last check and send the employee a bill for the remainder ?
No, unless (1) the employee resigned and (2) his resignation does not amount to constructive termination. The employer may withhold the remaining $7,000 only if the employee did not meet the condition of "30 days of employment with xxxxx".
Absent any language to the contrary, the requirement of "1-year commitment" is to be construed as the consideration expected from the employee (namely, "not to quit") in exchange for the bonus. Termination by the employer is self-defeating in the sense the employer himself made it impossible for the employee to fulfill the consideration that was expected from the employee. Therefore, the employer forfeits his entitlement to reimbursement.
In the event that the employee met the condition of "30 days of employment with xxxxx", he would be entitled to the remaining $7,000 as well.
add a comment |
Virginia employer terminated employee and wants signing bonus returned
Can the employer legally keep his last check and send the employee a bill for the remainder ?
No, unless (1) the employee resigned and (2) his resignation does not amount to constructive termination. The employer may withhold the remaining $7,000 only if the employee did not meet the condition of "30 days of employment with xxxxx".
Absent any language to the contrary, the requirement of "1-year commitment" is to be construed as the consideration expected from the employee (namely, "not to quit") in exchange for the bonus. Termination by the employer is self-defeating in the sense the employer himself made it impossible for the employee to fulfill the consideration that was expected from the employee. Therefore, the employer forfeits his entitlement to reimbursement.
In the event that the employee met the condition of "30 days of employment with xxxxx", he would be entitled to the remaining $7,000 as well.
Virginia employer terminated employee and wants signing bonus returned
Can the employer legally keep his last check and send the employee a bill for the remainder ?
No, unless (1) the employee resigned and (2) his resignation does not amount to constructive termination. The employer may withhold the remaining $7,000 only if the employee did not meet the condition of "30 days of employment with xxxxx".
Absent any language to the contrary, the requirement of "1-year commitment" is to be construed as the consideration expected from the employee (namely, "not to quit") in exchange for the bonus. Termination by the employer is self-defeating in the sense the employer himself made it impossible for the employee to fulfill the consideration that was expected from the employee. Therefore, the employer forfeits his entitlement to reimbursement.
In the event that the employee met the condition of "30 days of employment with xxxxx", he would be entitled to the remaining $7,000 as well.
answered 8 hours ago
Iñaki ViggersIñaki Viggers
8,71821026
8,71821026
add a comment |
add a comment |
Since the employee made a 1-year commitment, and did not quit within the year, I see no justification for the claw-back of the signing bonus. If the letter had said "you must remain employed for one year or the bonus will be repaid" that would be different.
However, before seriously considering a suit, you will want to consult an emplyment lawyer. You may want to do so before sending a communication insisting that your final payceck be paid in full.
add a comment |
Since the employee made a 1-year commitment, and did not quit within the year, I see no justification for the claw-back of the signing bonus. If the letter had said "you must remain employed for one year or the bonus will be repaid" that would be different.
However, before seriously considering a suit, you will want to consult an emplyment lawyer. You may want to do so before sending a communication insisting that your final payceck be paid in full.
add a comment |
Since the employee made a 1-year commitment, and did not quit within the year, I see no justification for the claw-back of the signing bonus. If the letter had said "you must remain employed for one year or the bonus will be repaid" that would be different.
However, before seriously considering a suit, you will want to consult an emplyment lawyer. You may want to do so before sending a communication insisting that your final payceck be paid in full.
Since the employee made a 1-year commitment, and did not quit within the year, I see no justification for the claw-back of the signing bonus. If the letter had said "you must remain employed for one year or the bonus will be repaid" that would be different.
However, before seriously considering a suit, you will want to consult an emplyment lawyer. You may want to do so before sending a communication insisting that your final payceck be paid in full.
answered 8 hours ago
David SiegelDavid Siegel
12.4k2347
12.4k2347
add a comment |
add a comment |
In my opinion, the sentence is a bit ambiguous. I'd lean toward agreeing that the employee kept their commitment, so termination might not apply. But, the problem with that is an employee could intentionally act in ways causing themselves to be terminated to keep the bonus. (Not saying that's what happened here.) If the judge felt it was ambiguous, like many legal issues, all that matters is which judge you get and how they rule, and no definitive answer can truly be given. You could argue the offer letter was a contract of adhesion, which means it was a standard contract and you were in a take it or leave it position. If that flies, ambiguities are generally resolved in favor against the writer of the contract. The employer would likely counter-argue their employment offer was up for negotiation, differentiating it from terms and conditions you have no negotiation power over, like between (non-extremely-rich) people and banks.
Some states have restrictions on last checks. I have no idea what, if any, Virginia laws apply to them. If you got lucky, maybe Virginia's law requires the last paycheck to be paid in full. (I have no reason to believe this is the case; all I am saying is that it should be researched.) If the judge feels the sentence applied to the situation requires the bonus be paid back, they might need to pay the last paycheck and separately attempt to collect from (including suing) the employee. Virginia may or may not have penalties for failing to give a proper last paycheck. If such penalties exist, whether they go to the state or the employee is a separate issue, again resolved through research.
As David Siegel said, definitely consult an employment lawyer, before doing anything. In my opinion, actually consult with 2-3.
New contributor
add a comment |
In my opinion, the sentence is a bit ambiguous. I'd lean toward agreeing that the employee kept their commitment, so termination might not apply. But, the problem with that is an employee could intentionally act in ways causing themselves to be terminated to keep the bonus. (Not saying that's what happened here.) If the judge felt it was ambiguous, like many legal issues, all that matters is which judge you get and how they rule, and no definitive answer can truly be given. You could argue the offer letter was a contract of adhesion, which means it was a standard contract and you were in a take it or leave it position. If that flies, ambiguities are generally resolved in favor against the writer of the contract. The employer would likely counter-argue their employment offer was up for negotiation, differentiating it from terms and conditions you have no negotiation power over, like between (non-extremely-rich) people and banks.
Some states have restrictions on last checks. I have no idea what, if any, Virginia laws apply to them. If you got lucky, maybe Virginia's law requires the last paycheck to be paid in full. (I have no reason to believe this is the case; all I am saying is that it should be researched.) If the judge feels the sentence applied to the situation requires the bonus be paid back, they might need to pay the last paycheck and separately attempt to collect from (including suing) the employee. Virginia may or may not have penalties for failing to give a proper last paycheck. If such penalties exist, whether they go to the state or the employee is a separate issue, again resolved through research.
As David Siegel said, definitely consult an employment lawyer, before doing anything. In my opinion, actually consult with 2-3.
New contributor
add a comment |
In my opinion, the sentence is a bit ambiguous. I'd lean toward agreeing that the employee kept their commitment, so termination might not apply. But, the problem with that is an employee could intentionally act in ways causing themselves to be terminated to keep the bonus. (Not saying that's what happened here.) If the judge felt it was ambiguous, like many legal issues, all that matters is which judge you get and how they rule, and no definitive answer can truly be given. You could argue the offer letter was a contract of adhesion, which means it was a standard contract and you were in a take it or leave it position. If that flies, ambiguities are generally resolved in favor against the writer of the contract. The employer would likely counter-argue their employment offer was up for negotiation, differentiating it from terms and conditions you have no negotiation power over, like between (non-extremely-rich) people and banks.
Some states have restrictions on last checks. I have no idea what, if any, Virginia laws apply to them. If you got lucky, maybe Virginia's law requires the last paycheck to be paid in full. (I have no reason to believe this is the case; all I am saying is that it should be researched.) If the judge feels the sentence applied to the situation requires the bonus be paid back, they might need to pay the last paycheck and separately attempt to collect from (including suing) the employee. Virginia may or may not have penalties for failing to give a proper last paycheck. If such penalties exist, whether they go to the state or the employee is a separate issue, again resolved through research.
As David Siegel said, definitely consult an employment lawyer, before doing anything. In my opinion, actually consult with 2-3.
New contributor
In my opinion, the sentence is a bit ambiguous. I'd lean toward agreeing that the employee kept their commitment, so termination might not apply. But, the problem with that is an employee could intentionally act in ways causing themselves to be terminated to keep the bonus. (Not saying that's what happened here.) If the judge felt it was ambiguous, like many legal issues, all that matters is which judge you get and how they rule, and no definitive answer can truly be given. You could argue the offer letter was a contract of adhesion, which means it was a standard contract and you were in a take it or leave it position. If that flies, ambiguities are generally resolved in favor against the writer of the contract. The employer would likely counter-argue their employment offer was up for negotiation, differentiating it from terms and conditions you have no negotiation power over, like between (non-extremely-rich) people and banks.
Some states have restrictions on last checks. I have no idea what, if any, Virginia laws apply to them. If you got lucky, maybe Virginia's law requires the last paycheck to be paid in full. (I have no reason to believe this is the case; all I am saying is that it should be researched.) If the judge feels the sentence applied to the situation requires the bonus be paid back, they might need to pay the last paycheck and separately attempt to collect from (including suing) the employee. Virginia may or may not have penalties for failing to give a proper last paycheck. If such penalties exist, whether they go to the state or the employee is a separate issue, again resolved through research.
As David Siegel said, definitely consult an employment lawyer, before doing anything. In my opinion, actually consult with 2-3.
New contributor
New contributor
answered 1 hour ago
user1902689user1902689
101
101
New contributor
New contributor
add a comment |
add a comment |
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Was there any other language about the 'bonus" in the letter or in any contract of employment?
– David Siegel
9 hours ago
That was the paragraph pertaining to the signing bonus. It appears to be very simple. At-will employee was involuntarily terminated.
– jlo-gmail
8 hours ago
1
In South Carolina, employers can be liable for triple ("treble") damages for unpaid wages. Virginia might, too (it's worth checking). So there could be more at risk if they think they'll hold back the pay and sort it out later.
– donjuedo
1 hour ago
Also, in some jurisdictions, failing to pay wages caries criminal liability for the manger(s) or responsible person(s), in addition to the civil liability for the company mentioned by @donjuedo. I'm not familiar with Virginia's laws in this regard. For those reading this question, the details of labor laws vary significantly from state to state (and, obviously, country to country). You are best off seeking advise from a lawyer familiar with labor law in your jurisdiction. Depending on the jurisdiction, there may be a government agency which will advocate for you with minimal/no cost/paperwork.
– Makyen
1 hour ago