What are my rights regarding the repayment of relocation costs?

UPDATED: Sep 30, 2022

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What are my rights regarding the repayment of relocation costs?

I recently left my company to work for a smaller company, in a different sector of the industry, across the country. In the contract that was initially signed they require reimbursement for a portion of the funds they spent relocating me across country 13 months ago. The clause is very vague in describing what is included in the amount calculated for reimbursement. They paid a cost of living adjustment that I took to be part of my standard pay, not a portion of the relocation expense, and that is now being included in what they are requesting for reimbursement. Is there grounds for a case or arbitration here?

Asked on January 11, 2016 under Employment Labor Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Yes, if you disagree about calculation of the amount you need to repay, that is grounds for a legal determination. You would either yourself file a lawsuit (which, if there is an arbitration clause in a contract you signed, or you and the employer both agree to arbitration, would be sent to arbitration) seeking a "declaratory judgment," or official legal determination of what the correct amount is and what makes it up; or refuse to pay more than the amount you believe is correct and then, if the employer sues you for the balance, raise your belief as to the correct amount as a defense, to be determined by the court or arbitrator.

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