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[FL] Can a separation agreement cancel an unmentioned relocation repayment obligation?
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2 years ago I was recruited and relocated from NYC to FL under a 3-year repayment agreement. The agreement states that if I left the job for any reason (voluntarily or if they terminated me) before the 3-year term was up, I would have to pay back some or all of the funds the employer paid to relocate me.
The job was a clear mismatch from the beginning. the employer is aware that i felt "trapped" in the agreement and would have left the job if i wasn't liable for almost $20k in relocation costs. yesterday, nearly 2 years into that repayment agreement, my employment was terminated. i was given a separation agreement. i don't think it says anything about the repayment agreement, so i'm hoping that's null and void by signing this contract. which i would like to do asap, but i need a lawyer to make sure i don't screw myself!
I understand how stressful it can be to navigate a situation like this. Can you tell me if the separation agreement you received includes any clauses related to the repayment of relocation costs?
i don't see it
Have you already signed the separation agreement, or are you still in the process of reviewing it?
still reviewing
Is there anything else the Employment Lawyer should know before I connect you? Rest assured they'll be able to help with your repayment agreement.
No.
Hi there! My name is Seth, and I am a licensed attorney. Please know that my responses are for general information only and do not constitute legal advice. I understand you're dealing with a situation where your employment was terminated nearly 2 years into a 3-year repayment agreement, and you're reviewing a separation agreement that might not mention the repayment terms. Have you considered any specific steps to address this situation?
Talking to you.
Could you tell me if there have been any discussions or communications with your employer about the repayment agreement since your termination? This will help us understand if there are any additional terms or agreements that might affect your situation.
They never said anything explicitly about me paying them back... but there have been a number of conversations about issues i was having with the job... it was a clear mismatch from the beginning and they were aware i've been unhappy from day 1 because a number of things were misrepresented to me. then starting in november i had some issues with the way i was being treated, and ended up in various HR meetings where the repayment agreement was brought up... at some point i said i felt trapped, because it was clearly not working for either of us, but i would never quit because i'm not paying them back for this whole situation that i regret so much... and the HR guy said "there are worlds in which" i wouldn't have to pay them back... that was in november... since then i have been in other HR meetings where essentially i said the same thing but they didn't respond with anything related to repayment...
The most recent HR meeting was a few weeks ago, and then it magically seemed to "resolve" and there was no meeting or discussion... i thought that was weird, so i kind of figured this was coming... my thinking is that possibly they want to let me out of the agreement and they had to go through a legal process to get that sorted out due to the initial repayment agreement, which is why it took a few weeks...
Thanks for sharing that. It sounds like a complex situation. Could you let me know if there are any deadlines or timeframes mentioned in the separation agreement that you need to be aware of?
Yes, i have to return the signed agreement within 21 days of yesterday if i want to accept it.
Based on your situation, there are several legal arguments and considerations in employment law that could potentially support your case:
Repayment Agreements: These are often enforceable if they are clear and specific about the conditions under which repayment is required. However, if the terms were misrepresented or if there was a significant change in the employment conditions that were not disclosed, it might affect the enforceability. Federal wage law can also limit how an employer recovers these costs, since under the Fair Labor Standards Act's "free and clear" wage rule (29 C.F.R. § 531.35), repayments cannot cut into the minimum or overtime wages an employee is owed.
Separation Agreements: These documents can sometimes override previous agreements if they explicitly state so. If the separation agreement does not mention the repayment obligation, it might imply that the employer is waiving that requirement, but this is not guaranteed without explicit language. If you are 40 or older and the agreement releases age discrimination claims, federal law under (29 U.S.C. § 626(f)) requires that you be given at least 21 days to consider the agreement and 7 days to revoke it after signing, which may explain the 21-day deadline you were given.
Constructive Dismissal: If the job was a mismatch and the conditions were misrepresented, there might be an argument for constructive dismissal, which occurs when an employee resigns due to the employer's conduct. This could potentially impact the repayment obligation.
Let me know if you have any questions or clarifications, if not I'll move forward with guidance.
The agreement also gives me money... plus any time and PTO still owed. Got it, go on.
Review the Separation Agreement Thoroughly: Carefully read the entire agreement for any references to repayment obligations, waivers, or related conditions.
Consider the Implications of Signing: Signing may waive certain rights or claims, and any financial package may be conditioned on accepting the agreement's terms.
Explore Constructive Dismissal: If the job was materially misrepresented or working conditions became intolerable, discuss possible constructive dismissal claims with your lawyer.
Negotiate with Your Employer: Consider discussing more favorable terms with HR or your employer, especially if they know about the mismatch or issues.
Document Everything: Keep detailed records of emails, meetings, conversations, and any agreements in case disputes arise later.
Please let me know if you have further questions.
I did feel there was some hints of constructive dismissal in at least one of those HR meetings... and they seemed to make everything a living hell for me ever since November when the original thing i complained about happened.
Quick heads up, I have to step away for a couple of hours. If you have any follow-up questions, please ask here and I will respond once I return. Otherwise, if you are all set, simply reply "all-set" and I will close this out.
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