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[NV] Can an employer require immediate repayment of a sign-on bonus?
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I work as an NP in Nevada. My employment agreement states I must pay back my sign on bonus in full immediately upon leaving if I terminate employment before my third anniversary. I’ve been told they would have to sue me to get it back. I know they will ask me how unprecedented to pay it. How do I tell them sue me without sounding like an ass.
I understand that dealing with employment agreements can be quite stressful. Have you already made the decision to leave your position, or are you still considering your options?
I will be placing my letter of resignation in July 2.
Have you had any discussions with your employer regarding the sign-on bonus and your potential departure?
No
Is there anything else the Employment Lawyer should know before I connect you? Rest assured they’ll be able to help with your sign-on bonus issue.
No.
Thank you for choosing our service! My name is Jessica and I am a licensed attorney that will be assisting you with your question. I understand you’re dealing with a situation where your employment agreement requires you to repay your sign-on bonus if you leave before your third anniversary. Have you considered any specific actions or legal steps you might take in response to this situation?
No, that is why I’m reaching out. A prior coworker left this same position a few months ago and the CEO reached out via email asking how she was going to pay back the sign on bonus. She took it out of her retirement but I do not have that option or the ability to pay it back in full prior to leaving.
Could you let me know if there are any specific terms or conditions in your employment agreement that might affect the repayment of the sign-on bonus?
The employee agreement states, “$10,000 signing bonus. If, for any reason, you terminate employment with [business name redacted] before your third anniversary, you are required to immediately reimburse [business name redacted] the entire amount of the signing bonus.”
I plan to give notice July 2, with my last day being July 17. That’s well before my first anniversary, let alone my third.
Contractual Obligations: The clause in your employment agreement requiring repayment of the sign-on bonus is a contractual obligation. This means that legally, you are bound by the terms you agreed to when you signed the contract.
That’s fine. I’ll pay it. I just don’t have the full amount laying around right now. And I’ve been told in Nevada they would have to take legal action to obtain it.
It’s understandable that you might not have the full amount available right now. Here are some steps you can consider:
- Negotiate a Payment Plan - Reach out to your employer and explain your situation. You can propose a payment plan that allows you to repay the bonus over time. Employers may be open to this, especially if you show willingness to fulfill your obligation. Get any agreed plan in writing. Under Nevada law, an employer generally may deduct amounts from your wages only when you authorize the deduction in writing (NV Rev Stat § 608.110), so read any repayment paperwork carefully before you sign it.
- Prepare for Possible Legal Action - If your employer insists on immediate repayment and you cannot comply, they may choose to pursue legal action. Be prepared by gathering all relevant documents and communications related to your employment and the sign-on bonus. In Nevada, an action on a written contract must be brought within six years (NV Rev Stat § 11.190(1)(b)), and a claim for $10,000 or less can be heard in justice court small claims (NV Rev Stat § 73.010).
- Explore Financial Options - Consider other financial resources or loans that might help you cover the repayment. This could include personal loans or borrowing from family or friends.
Please let me know if you have further questions. I hope I was able to help resolve your issue! If you have any other questions, feel free to ask. Just a friendly reminder, don’t hesitate to reach out whenever you need assistance!
Thank you for your time.
I hope I was able to help resolve your issue! If you have any other questions, feel free to ask. Just a friendly reminder, Don’t hesitate to reach out whenever you need assistance!
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