Advertisement

Drudge Retort: The Other Side of the News
Monday, November 20, 2023

Some U.S. businesses are forcing workers to sign contracts that demand steep "reimbursements" if they leave.

More

Comments

Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

That might work if the "reimbursements" are reciprocal. IE they offer a bonus for staying employed.
Having said that, I'd walk out the moment that issue was raised. Never have needed a job that bad and I've had a job since I was 12.

#1 | Posted by phesterOBoyle at 2023-11-20 12:29 PM | Reply

I've always been able to find a job. May not have been my dream job but I always worked to pay my bills. I've never been scared of overtime either.

This clause is one that would have me walk, no questions asked. What it seems is missing here, is consideration for the worker and likely with this attitude of employment pay and the employee treated well. It's a recipe for disaster when it comes to employment.

#2 | Posted by BBQ at 2023-11-20 01:23 PM | Reply | Newsworthy 1

There's no need for unions. We treat our employees farily. - US businesses
You owe us $20K if you leave this job - Also US businesses

#3 | Posted by johnny_hotsauce at 2023-11-20 01:45 PM | Reply | Newsworthy 2

3

You understand that a public sector worker is 5 times more likely to belong to a union than a private sector worker, right?

I can't read the article but I would have to think consideration has to be demonstrated in exchange for requiring a reimbursement from a worker who has left.

I used to work for a company that used an extensive training program for some new hires (not me). When they hired them, they signed a contract that stipulated if they left their position for another sales job within 5 years of employment, they owed money back to them. It was a disappearing fee over 5 years. They argued they spent $100K+ on professional sales training which is why they felt they were owed money back.

I doubt they collected much on it and I imagine some states allowed those to be pursued more than others.

#4 | Posted by eberly at 2023-11-20 01:57 PM | Reply

What it seems is missing here, is consideration for the worker and likely with this attitude of employment pay and the employee treated well.

#2 | POSTED BY BBQ

If the clause is put into the employment contract, the job serves as consideration.

#5 | Posted by Sycophant at 2023-11-20 02:28 PM | Reply

#4 | Posted by eberly

Today you mean. And the GOP is doing what they can to end those unions.

In the heyday, most major manufacturing companies had unions and smaller ones too. There has been a coordinated effort aimed at de-unionizing America for decades led by the wealthy. The wealthy don't like Unions. Just look at the auto industry. I dare say home to the largest movement driving unionization nationwide during the rise of the unions. There were twice as many workers just in automotive vs today at the peak and they were in Union States and virtually all unionized. Today they are all over the country and many strategically located in anti-union states.

#6 | Posted by GalaxiePete at 2023-11-20 03:27 PM | Reply

I would think this would be found illegal but then again - today's SCOTUS.

I once got in trouble for telling people they don't have to sign employment agreements brought around by our employer at the time. The company owners (one of them a friend) were pulling funny business and these people depended on their jobs. I told them to act like a union because they cannot let you all go. They make an example - walk out as a group. You can have a new job tomorrow but they will be out of business. The next time it was agreeing to switch to an outsourcing company. The choice? Agree or they fire you. They let you go? Collect unemployment - you don't have to agree to work for someone else they find. They let people go, the state determined they were eligible for unemployment.

I am still friends with the --- hole believe it or not. We don't see eye to eye on how to run a business, treat vendors and employees. Or really much else anymore. He's a multi-millionaire despite multiple bankruptcies by gaming the system but a life long friend. We have some downright nasty debates though.

#7 | Posted by GalaxiePete at 2023-11-20 03:37 PM | Reply

"There has been a coordinated effort aimed at de-unionizing America for decades led by the wealthy. The wealthy don't like Unions. Just look at the auto industry"

I couldn't agree more.

#8 | Posted by eberly at 2023-11-20 04:26 PM | Reply

I can't read the article but I would have to think consideration has to be demonstrated in exchange for requiring a reimbursement from a worker who has left.
I used to work for a company that used an extensive training program for some new hires (not me). When they hired them, they signed a contract that stipulated if they left their position for another sales job within 5 years of employment, they owed money back to them.
#4 | POSTED BY EBERLY

I understand educational reimbursements that are pro-rated and provide transferrable benefits to the employee such as a degree or certification. I have taken advantage of such programs offered by employers. It is reasonable that if an employer is willing invest in the improvement of their employee that the employer be granted on a return on that investment. The article even notes that historically that is what these type of contract clauses have been used for and cites federal case law where those clauses have been upheld. But that's not what is going on with the contracts described in this article.

Many of the clauses referenced here include things that have traditionally been considered cost of doing business expenses such as the cost of hiring a replacement, governmental mandated training that does not provide transferrable benefit to the employee and even trying to charge employees for the normal OTJ learning that occurs in any environment. One such example included a salon owner claiming that the time she had one of her new employees wax the owner's legs that constituted reimbursable training costs for the employee. They also list cases where the clauses have been used as deterrents to employees suing over labor violations such as unpaid OT, harassment, dangerous work environment, etc. Another example includes a contract for a health care worker that includes unspecified costs such as having to pay the difference between their salary and the cost of their replacement during the remaining term of the contract.

In some of these cases the reimbursement requirements are placed upon lower income employees and would result in their earning sub-minimum wage pay when reimbursement is factored in. In other cases these contracts sound like indentured servitude and may violate human trafficking laws.

#9 | Posted by johnny_hotsauce at 2023-11-20 04:46 PM | Reply | Newsworthy 2

Otw to slavery lite for corporate profits.

Outstanding

#10 | Posted by fresno500 at 2023-11-21 02:04 AM | Reply

Good luck with that corporations. Next thing you know is they'll be whining because no applicants are walking thru the door.

#11 | Posted by a_monson at 2023-11-21 03:19 AM | Reply | Newsworthy 2

Good luck with that corporations. Next thing you know is they'll be whining because no applicants are walking thru the door.

#12 | Posted by a_monson at 2023-11-21 03:19 AM | Reply

Wow. This is some crazy @ssed -----...
Going to have to warn my son to read the
fine print when he starts on with a company
after finishing college.

#13 | Posted by earthmuse at 2023-11-21 06:41 AM | Reply

Indentured servitude? How Libertarian.

#14 | Posted by Zed at 2023-11-21 08:13 AM | Reply | Newsworthy 2

Got that right Zed...

#15 | Posted by earthmuse at 2023-11-21 01:44 PM | Reply

#4 | POSTED BY EBERLY

The trucking industry uses this tactic a lot. They pay to get someone licensed, If the driver quits within two years, the driver owes them the cost of driving school. Meanwhile, for those first two years drivers make horrible wages.

#16 | Posted by Whatsleft at 2023-11-21 05:09 PM | Reply

9 & 16

not shocked and it's an abuse for sure.

#17 | Posted by eberly at 2023-11-21 05:19 PM | Reply

It's common to sign something that says if you quit after training, you have to pay the company back for it. Usually it's a 1 or 2 year thing. I never minded signing the agreements because I knew I wouldn't be leaving anytime soon afterward.

#18 | Posted by byrdman at 2023-11-21 07:17 PM | Reply

Comments are closed for this entry.

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy | Copyright 2023 World Readable

Drudge Retort