›

Educational Assistance PayBack

HCCADCHCCADC 204 Posts
in HR & Employment Law Vote Up0Vote Down
We are in the process of developing an Educational agreement where the employee needs to work with us for a specified amount of time after the reimbursement of financial help. We have a statement in there that if the employee quits before the specified time, the employee is required to pay a pro-rated amount of money. If the employee owes this money, we will deduct it off his/her last paycheck. We will have the employee sign this agreement. Is this legal? I know that we are not allowed to take a paycheck below minimum wage, however if we have the signature, would this be legal to deduct the amount, even if it goes below minimum wage?
Share on Facebook Share on Twitter

Comments

  • 2 Comments sorted by Votes Date Added
  • TN HRTN HR 1,170 Posts
    PMVote Up0Vote Down
    Nope, never. Even with an agreement. Just like you cannot withold overtime even with an agreement in place or garnish wages to a level where it would fall under minimum wage.
    Share on Facebook Share on Twitter
  • CroutCrout 1,238 Posts
    PMVote Up0Vote Down
    [font size="1" color="#FF0000"]LAST EDITED ON 07-22-05 AT 01:45PM (CST)[/font][br][br]Check your state law. In PA, for example, you cannot go below minimum. These posts come up all the time, and it's always a headache for the company to collect on these things. You can have the EE sign almost anything....try to collect. The attorney's fees will quickly outpace the money you could get back from the EE. I've often wondered why companies don't do it the way the old GI Bill did it: FIRST you work a certain number of years, THEN you can start drawing on your educational benefits.
    Share on Facebook Share on Twitter
Sign In or Register to comment.