Can a Company Force You to Pay Back Tuition Reimbursement

8. Could you leverage “sensitive” counterclaims? A legal claim is one that is firmly based on the facts and the relevant law. Some legal claims have more influence than others because of their “sensitive” nature. What do we mean by nature “sensitive”? In general, a legal claim that involves not only legal and financial risks, but also relational, reputational and/or regulatory risks. If you sue someone for breaking their toe, they or their insurance company may have to pay you $5,000; However, for example, if you sue someone for forcing you to have sex or for forcing you to break federal laws prohibiting bribery of foreign government officials, they may have to pay you money, but they may also have to go to jail. Ouch! Most companies now require that the cost of tuition reimbursement be reimbursed when the employee leaves. At least at the MBA level, the requirement was about two years later period of service. When the employee left the employment relationship after two and a half years, the employer began to sue for recovery of the balance of the training debt. The evidence showed that the employee had received valuable training; He received specialized lessons, studied books and accompanied other technicians on service assignments to learn the trade.

The employer stated that the purpose of the education contract was to recover some of the money spent on the employee`s training if the employment relationship was terminated prematurely. The employee responded that the study contract amounted to debt bondage and violated Michigan`s wage and benefits law. That`s why it`s important to save your own funds on tuition, books, and other related expenses. If you are fired for a specific reason, such as. B insubordination, non-performance of your duties, harassment, discrimination, theft or any other serious reason, you may have to reimburse your tuition fees. Employers rely on tuition reimbursement laws to prevent employees from being intentionally fired so they don`t have to reimburse the cost of a master`s degree, for example. If you are fired for cause, remind your employer that the refund of your tuition fees will have tax consequences for the business if the refund is claimed in whole or in part as a tax deduction. The lesson learned from the Sands Appliance Services case is that a signed agreement on the reimbursement of training fees or the reimbursement of tuition fees by an employee is valid if: Contracts that require reimbursement do not prevent people from leaving the company.

But if the employee leaves and thus breaks the contract, his new employer repays the debt. Because employees leave companies for different reasons, not all companies require employees to reimburse tuition in all cases. Check the wording of your agreement to see if you need to reimburse tuition in the event of dismissal, termination for cause, voluntary departure or other specific situation. It`s important to remember that you don`t have full control over this situation because employees adapt to your decision in ways you may not like. If you`re too cheap – paying only a portion of the tuition, which requires a very long payback period – employees won`t use it. Those who have resources will pay for it themselves and go immediately after. Employers require tuition reimbursement agreements to avoid training employees who use their education to get a new job that works elsewhere. Companies legally protect themselves by requiring employees to reimburse refunds if the employee leaves the company within a certain period of time after completing the training. Tuition reimbursement or student assistance means that your employer will help you pay the bill for your continuing education courses or degrees, provided you meet their guidelines. The most common scenario that triggers a tuition reimbursement agreement is a voluntary departure of an employee from a company. Even if the reason for this is retirement, pregnancy, disability, or any other reason that does not include work for another company, the employee does not provide the employer with the benefit that the company had in mind when it agreed to pay for the employee`s education.

2. Has anyone agreed in any way, at any time, not to enforce or waive your obligation? I always ask my clients who face repayment obligations if anyone in authority, in the human resources department, or even in a large meeting of colleagues has ever (a) written, (b) said, (c) represented, (d) insured, (e) proposed, or (f) implied, “Well, in these circumstances, we certainly wouldn`t ask you to repay.” If you have a repayment obligation “hanging over your head” and want to do without it from your former employer, whether it`s for (a) tuition reimbursement, (b) moving expenses, (c) a registration bonus or even (d) a short-term loan, we offer our sample letter for repayment waiver – with 18 good reasons. It shows you “what to say and how to say it”. ™ To receive your copy to adapt to your own facts and circumstances, simply [click here] – Delivered by email – Instant! 10. Remember that you can also ask your nearest employer to cover the reimbursement costs. While this is not a “waiver” of your former employer`s repayment obligation, you can achieve the same goal by asking if your next employer could reimburse you for your refund. This is justified by the fact that your next employer will definitely reap the benefits of your improved education and can also save money by not having to pay to move you, as might be the case with another out-of-town candidate. Your leverage to demand such a refund is highest when your potential employer asks you for what you are looking for as compensation, not after accepting the job. If you`ve always wanted to go back to college, but you don`t know how you`d pay for it, or if you`re afraid of racking up student loan debt, your employer may be able to help. This is called tuition reimbursement – and many companies offer it to employees as an added benefit. If your employer doesn`t offer tuition reimbursement, but you want to try to convince them to change their mind, you may need to submit a proposal explaining why the training will benefit both you and your business.

6. If your employer has breached a legal obligation to you, for example.B. payment of your last salary, commissions or expense reimbursements – your own payment obligations are probably also null and void. Sometimes employers take the following position: “Until a dismissed employee fulfills all of their obligations to us, we will not comply with our legal obligations to them, including those required by law.” This waiver of legal liability is regrettable and in some cases unforgivable. .