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Zachary
Zachary, Lawyer
Category: Employment Law
Satisfied Customers: 3814
Experience:  Contracts, Wrongful termination and discrimination
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I signed a relocation contract with a company last May. I

Customer Question

I signed a relocation contract with a company last May. I took the job in June. The company announced a buy-out in July. We then were offered a $25k retention bonus in Oct to stay through the buy-out Feb 14th. End of Jan we were told by upper mgmt that our dept was being taken over by separate non-interested party. I did NOT want to continue with separate non-interested party after buy-out as this was no longer the company I chose to move my life and family for. I left the company March 22, 2013. On my last paycheck, they withheld over $4,000 as a result of my "relocation contract" with a company that no longer exists. Furthermore, they refuse to pay me the $25k
Submitted: 1 year ago.
Category: Employment Law
Expert:  Zachary replied 1 year ago.
Hi,

Thank you for your question.

Have they explained what their reasoning was on not paying the 25K retention bonus and withholding the $4K?
Customer: replied 1 year ago.

They say: "I left before receiving the bonus..." and that "because you signed the relocation contract". Myself and at least 9 other employees were told that the relocation contracts would be null and void as a result of the sale AND another company taking over our dept.

Expert:  Zachary replied 1 year ago.
Thank you for your response.

They owe you the $25K for sure because you stayed through the time which was required to get the bonus. You may sue them for this amount.

In regard to the $4k, this might be a bit more difficult. There was likely a contract you signed along with the moving advance which says it must be repaid if you leave within a certain amount of time. Unless the contract says it was "non-assignable" it may have been assigned to the new company which took over.

However, it's hard for me to tell without looking at the contract.

Because the amount is large, it is probably a good idea to hire a local attorney to bring the claim for you, or at least sit down with you in a private consultation where he/she can look over your paperwork and give you a full analysis of your claims. This is not a claim that I would recommend you attempt to bring on your own.

Please let me know if you have any questions. Please also remember to kindly rate my answer positively so that I am compensated by the website for my work on your question. Rating does not cause any additional charges and will not prevent us from further discussing your questions.

Best Regards,
ZDN
Zachary, Lawyer
Category: Employment Law
Satisfied Customers: 3814
Experience: Contracts, Wrongful termination and discrimination
Zachary and 7 other Employment Law Specialists are ready to help you
Customer: replied 1 year ago.

Thank you for your advice! You are correct in that the relocation contract did state I would be responsible to re-pay the amount should I leave prior to 12 months (100%) and 12-24 months (50%). However, there is NOT an assignability clause in my relocation contract. The company is now doing business under an entirely different name. Matter of fact, all logos and name sake to prior company was immediately removed after the close of sale.

Expert:  Zachary replied 1 year ago.
I think you will have an argument that you don't owe that back. It should be part of the same case when you talk to your lawyer.

Good Luck and let me know if there is anything else.

-ZDN

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