How should an employee tell an employer they are sending a sign-on bonus promissory note to a lawyer for review?

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Richard
Richard

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Based on your situation, there are several legal arguments and considerations in employment law that could potentially support your case:

  1. Contractual Obligations: The original employee agreement you mentioned requires the sign-on bonus to be repaid in full immediately. This clause is a contractual obligation, and any deviation from it, such as the 30-day grace period, should be documented and agreed upon by both parties.
  2. Promissory Note: A promissory note is a legal instrument that outlines the terms of repayment, and its enforceability is generally governed by Article 3 of the Uniform Commercial Code (U.C.C. § 3), which every U.S. state has adopted, with some modifications, to regulate negotiable instruments like promissory notes. It's crucial to review this document carefully to ensure it aligns with any verbal agreements or modifications to the original contract.
  3. Good Faith and Fair Dealing: Employers are generally expected to act in good faith and deal fairly with employees. If there were threats to withhold paychecks, this could be seen as a breach of this duty, depending on the jurisdiction. Under the Uniform Commercial Code, every contract or duty imposes an obligation of good faith in its performance and enforcement, a principle that reinforces the expectation of fair dealing referenced here. (U.C.C. § 1-304)
  4. Negotiation and Modification: Any changes to the repayment terms, such as the grace period, should ideally be negotiated and documented to avoid future disputes.

Let me know if you have any questions or clarifications, if not I'll move forward with guidance.

Unsecured Promissory Note

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I'm retaining legal counsel for a sign on bonus repayment. How do I let my employer know I'll be sending the promissory note they requested I sign to counsel for review?

user
Lexi
Lexi, Chatbot

I understand that dealing with a sign-on bonus repayment can be stressful. How long has it been since your employer requested the promissory note?

3 hours.

user
Lexi
Lexi, Chatbot

Have you already chosen a specific lawyer to represent you in this matter?

Yes, but they don't have openings until Thursday at 4.

user
Lexi
Lexi, Chatbot

Is there anything else the lawyer should know before I connect you? Rest assured they'll be able to help with your sign-on bonus repayment.

No.

user
Richard
Richard

Hello. My name is Richard and I have been a licensed attorney for over 25 years and hope to be of assistance. I cannot formally represent customers of this website or perform actual legal services on your behalf. I understand you're retaining legal counsel for a sign-on bonus repayment and need to inform your employer about sending the promissory note for review. Could you tell me more about any steps you've considered taking regarding this situation?

It's a long story, but they were initially threatening to withhold last 2 paychecks. I countered and they said they would give a 30 day grace period. They sent me a promissory note to review and sign.

user
Richard
Richard

Got it, thanks for sharing that. Have you had a chance to review the promissory note they sent you? If so, did you notice any specific terms or conditions that stood out to you?

I haven't yet. This is first breath of air all day from this. I will be signing my contract with my lawyer later today. They do not have an appointment until Thursday. They will likely want $10,000 in full by August 15.

user
Richard
Richard

I understand this is a lot to handle. Could you tell me if there was any original agreement or contract that mentioned the repayment of the sign-on bonus? If so, what were the terms regarding repayment?

Original employee agreement stated it was to be paid in full immediately. But did not make specifics beyond that.

user
Richard
Richard

Based on your situation, there are several legal arguments and considerations in employment law that could potentially support your case:

  1. Contractual Obligations: The original employee agreement you mentioned requires the sign-on bonus to be repaid in full immediately. This clause is a contractual obligation, and any deviation from it, such as the 30-day grace period, should be documented and agreed upon by both parties.
  2. Promissory Note: A promissory note is a legal instrument that outlines the terms of repayment, and its enforceability is generally governed by Article 3 of the Uniform Commercial Code (U.C.C. § 3), which every U.S. state has adopted, with some modifications, to regulate negotiable instruments like promissory notes. It's crucial to review this document carefully to ensure it aligns with any verbal agreements or modifications to the original contract.
  3. Good Faith and Fair Dealing: Employers are generally expected to act in good faith and deal fairly with employees. If there were threats to withhold paychecks, this could be seen as a breach of this duty, depending on the jurisdiction. Under the Uniform Commercial Code, every contract or duty imposes an obligation of good faith in its performance and enforcement, a principle that reinforces the expectation of fair dealing referenced here. (U.C.C. § 1-304)
  4. Negotiation and Modification: Any changes to the repayment terms, such as the grace period, should ideally be negotiated and documented to avoid future disputes.

Let me know if you have any questions or clarifications, if not I'll move forward with guidance.

How should I let them know that I'm sending the promissory note to a lawyer for review?

user
Richard
Richard

You can let them know through email or by correspondence.

They've already been a bit difficult to deal with. And I don't want to further make my last few days harder. But I also know time is of the essence.

user
Richard
Richard

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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