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Tuesday, June 22, 2021

Can an Employer Require an Employee to Repay Training Costs if the Employee Resigns Shortly After Incurring the Training Costs?

Last updated Thursday, April 15, 2010 01:00 ET

Can an employer attempt to recoup theses costs? Yes, it can.

04/15/2010 / SubmitMyPR /

America’s workforce is mobile.  This means that an employer may spend thousands of dollars to train a new employee, only to have the employees leave the company a short time later.  Can an employer attempt to recoup theses costs?  Yes, it can.

Agreements requiring employees to repay certain costs associated with training are on the rise. These costs could include travel expenses associated with training events, the cost of formal coursework, or the fees to attend professional events.   Typically, prior to an employee’s first day of work, the employee will be asked to sign a contract, agreeing to repay training costs up to a set amount if the employee resigns or is fired within a certain time period following the employee’s start date. 

To ensure enforceability, an employer should draft terms that are reasonable regarding the repayment amount and the length of time an employee must remain at the company to escape the repayment obligation.  For assistance in drafting a repayment agreement or for advice regarding an agreement you have been asked to sign, please contact the Texas employment lawyers at Clouse Dunn Khoshbin LLP at [email protected].

 


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