What to do if my previous employer is threatening to take legal action for a relocation payment that I received prior to my employment?

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What to do if my previous employer is threatening to take legal action for a relocation payment that I received prior to my employment?

I signed a contract that I would repay the relocation if my employment was ended within a certain time frame, which I did. They are not working with me on a payment plan. What should I do? Will this hold up?

Asked on July 3, 2012 under Employment Labor Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you signed a contract that you would repay the relocation cost if your employment ended within a certain time frame and it did, you would seem to have to repay the money--such provisions are readily enforceable. The company does not have to work with you on a payment plan, but can insist on it all at once (unless the contract itself provided for payment over time); if you do not or cannnot pay it, they can then sue you, and would seem to have an excellent chance of prevailing.


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