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View Full Version : Can a company hold my wages to pay for training? Ohio


six sigma
10-10-2006, 02:29 PM
Company S has sent me to training. I gave my two weeks notice because I have been offered a better job. Company S has told me that they are going to hold my last check of two weeks and my vacation to pay for the training. After they do that I have to pay them $4900.00 by Friday. Can they do that and what rights do I have if any?

cyjeff
10-10-2006, 05:00 PM
Were you given notice of an expected term of employment after the training?

If it was six sigma training, the training is pretty expensive and I can see an employer requesting a future employment contract to send you.

Did you sign such a contract?

six sigma
10-10-2006, 06:33 PM
When the training was almost completed I was given a paper to sign stating that I had to stay 12 months after completion. And yes I signed the piece of paper.

robb71
10-10-2006, 06:50 PM
It sounds that the company may a legal basis to hold your responsible for the costs associated with the training course. It's not uncommon for employees to sign off on a commitment when the company pays for education and training. And something of this dollar value will often warrant a multiple year commitment. I'm actually surprised that you were only required to stay 1 year after completion of the training.

You ask if your former employer is able to hold your final check. The short answer is "NO". I'll assume that you are exempt under FLSA. This means that you do not qualify for overtime when it's worked. If this is true, then a payroll deduction is not an option to recoup monies due. This does not relinquish you of responsibility to settle this debt. It only eliminates the option of a payroll deduction. Realistically your former employer holds no obligation to make repayment terms amenable. Payment may be demanded in full and this would be legal. If they are unable to collect, then the options will involve the courts.

neoabacus
10-17-2006, 12:48 PM
I have a question reguarding the timing of the signed agreements

say in a company meeting in march they announce company directed training is no longer subject to re-imbursement by the employee.

the staff handbook is updated to reflect the new policy.

in june or july employees are directed to take training (and subsequently get certified)...

after training is completed and some certifications have been obtained the company asks employees to sign a "training agreement" which states the employees are responsible for paying for the training if they leave in 2 years or less and cannot compete with the company for a period of 1 year.

when asked they say the ceo said this training was expempt from the new policy and that if we did not sign our employement would be terminiated ( they actually said fired)

my question is this if i never had a chance to decline training based on having to sign an agreement is this an enforcable contract, or is the contract even valid?

I have quit and they have said they will take all of my last paycheck to cover the cost and wanted me to sign a promissary note for the difference.

yes I am a exempt employee and not under a CBA.

state is ohio

robb71
10-17-2006, 12:56 PM
If you are correctly classified as exempt under FLSA, it's my understanding that a payroll deduction is not an option under these circumstances. USDOL addresses this issue via an opinion letter (FLSA2006-7). This would not relieve your responsibility to reimburse for the course. It only eliminates the option of a payroll deduction. If you refuse to make good on this debt, the former employer could send the matter to collections or file a civil suit against for monies owed.

If you are non-exempt, the answer would be different.

neoabacus
10-17-2006, 01:18 PM
I understand about the payroll deduction , what is your opinion on the enforcability of the agreement?

IE force us to sign under threat of firing after training is complete?

robb71
10-17-2006, 01:51 PM
I cannot comment with any certainty as I have not seen your agreement. The best bet is to have a lawyer review the agreement to see if it's indeed enforceable.

Just because your handbook says one thing and the agreement another does not in itself make the agreement unenforceable. There are always exceptions and any well written handbook should include a disclaimer that it does not constitute a contract.

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