I accepted a position with an Automotive Manufacturer in Alabama. In this acceptance I had to sign a relocation agreement stating that I would stay with the company for 12 months or I had to repay the relocation amount. In the 9th month I turned in my resignation of 4 weeks so I terminated employment at the 10th month. During this time I was notified that I would have an exit interview and I would be liable for the relocation of $3,100+ which I knew was incorrect. On my last day no one from HR came to do the interview and I left the facility. 2 months later they mailed a letter stating that I owed $6,997 and they withheld my last payment of $1742 so I owed the balance. I disputed this for a few months and then in August 2004 I offered to pay the balance less gross up and never heard from the company again. Now, in May 2006 they have sent a letter stating that payment arrangments needed to be made for the balance of $5,000+ or legal actions would be made.

I would like to know how far would this company actually go for $5,000? What are the legal actions that they could impose? Does relocation repayment in Alabama have a statute of limitations? How far should I push this? I understand that I signed the agreement but when I was first notified that on my last day repayment must be made I found out that 4 others receiving the relocation benefits did not sign the agreement and I had to sign it on the spot during new hire orientation.

We do not have any way of knowing how far they will take this. Some employers might drop it after the initial letter; others will not hesitate to take you to court. We have no way of knowing which way this particular employer would go.

I'm sure there is a statute of limitations but I have no idea what it is. I'd be thinking in terms of years, though; it's entirely possible that they are still within it.

No one here can possibly judge how far you should push this. It's not our call to make.

Whether other employees signed the agreement or not is irrelevant. YOU did. Only an attorney in your state can judge whether the agreement is enforceable but nothing you have posted gives me any reason to think that it is not. As an attorney I sometimes work with says, Assume that anything you sign is enforceable until an attorney tells you it is not.

Who knows how far they'll go? They may be trying to prove a point.
Generally speaking, there is no SOL on such items. What did the agreement you signed say? How long ago did this happen? There is nothing inherently illegal in requiring you to sign a repayment agreement and not requiring other new hires to sign one; maybe they were just better negotiators.

I terminated my employment February 27, 2004. The last letter submitted was August 10, 2004. The company did not resume action until May 2006.

Brief summary of Relocation Acknowledgement:
Team Members who receive relocation benefits are expected to remain employed by Company for 12 months for the date of hire or date of transfer. If the team member voluntarily leaves Company during the 12 month period, the team member shall be responsible for reimbursement of all of these relocation benefits.

Team member authorized Company to withhold the maximum amount allowed by law, from payment of any and moneys due in the nature of wages, reimbursable expenses, and any other payment to satisfy the obligation. Team members also agree that if the foregoing withholding is insufficient to extinguish the obligation, then the balance shall become immediately due and payable without notice or demand. In addition, team member agress that he/she will be responsible to pay any legal expenses assoicated with the collection of this debt.

This relocation agreement must be signed and returned to the HR Director. Relocation benefits will notbe initiated until this agreement is received.

I have read and understand the terms & conditions set forth in this Agreement. In the event that I should terminate my employment within the 1st 12 months after my effective hire date, I agree to abide by these terms & conditions, inlcuding my obligation to repay relocation expenses.

So, why would you think this is unenforceable? It sounds pretty clear to me, but the best recommendation I can make is to see an attorney versed in contract law and show him the document in its entirety.

So, you got a letter demanding repayment in August of 2004 and you ignored it, obviously hoping the situation would go away and it didn't. To be frank, not a good idea. :(

The last contact made with the company in August 2004 was a letter from myself addressed to them asking for confirmation on payment arrangements. I never heard from them again until now - almost 2 years later. I guess they were the ones that did not have my relocation repayment at the top of their priority at that time. If they would have addressed this issue then, they would have their money.

Should I work on their time? I tried to do what was in the best interest of both parties and I was ignored.

Then, I guess it's time you took the previous advice and contacted an attorney. I really don't know if there is an SOL for this type of case in your state and what it is if there is one.