Background:
My company has a tuition reimbursement plan mentioned in an old Employee Handbook dated 2/98. Note, I did sign the handbook after I started work. The handbook says: "Employees utilizing this benefit (Tuition Reimbursement) will be required to sign a Tuition Reimbursement Agreement which will include a Recovery Clause stipulating that in the event that the employee voluntarily terminates employment within one year of course completion, the employee will reimburse the Company for paid Tuition Reimbursement." The Tuition Reimbursement Agreement that they gave me to sign states that I have to stay two years or I have to pay back the money. I must pay 100% if less than one year, and 50% if over one year, but less than two years. The agreement, if I sign it, says they can deduct from my paycheck the owed amount even if I'm terminated due to poor performance. It does not state anything about layoff, which would seem to me that it would be up to them to do what ever they want.

1) Is it legal to tie tuition reimbursement
to employment duration? (i.e. if you leave,
are terminated, or are laid off then must
pay back percentage upto 100%)

2) What does it mean when policies are added/changed/deleted in new employee handbooks? If I don't sign new versions of the handbook, what does that mean?

3) The Tuition agreement says that it is "in no way a contract of employment" yada yada yada. The handbook states this also. Why do they think they need to state this?


Thanks
steve

With the exception of the 50% decrease in year two, this sounds like our policy.

I just wasked the same question of our corp. legal counsel. A third party law firm researched the question and answered as follows:
The agreement is a promissory note and could be pursued in small claims court. It is a legal instrument. Now the question as to whether it can be deducted from your paycheck is all together different.

It depends on your particular state's laws regarding pay practices as to the employer's ability to legally deduct amounts from an employee's pay check.

In Illinois, apart from those required by (1.)law, (2.) that to beneift the employee, (3.)those for a valid wage assignement, or (4.) made by a municipality of 500,000 or more, this can not be done except with the express written consent of the employee freely given when the deduction is made. I interpret this to be the day that the duduction is to be taken, even if though you agreed to this some time in the past.

Texas has a similar 'Payday Law', but their's is even more restrictive of an employer's ability to unilaterally dip into an employee's check.

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