I have a question regarding relocation agreements and final paycheck allocation. I signed an agreement less than a year ago authorizing a relocation of my job from IL to CA. Per the agreement, I was given a $1,500 expense allowance for the relocation, and all other details (movement of household goods, auto, etc) were direct billed to the company, and I have no idea what those incurred costs were. The agreement stated that if I failed to remain employed for 1 yr from the date of transfer, that I would be required to "pay the amount advanced to you for relocation expenses". Am I to believe this is for the entire cost of the move, or just the cash advanced to me? Can the company accept money from an employee for full relocation costs if they have already claimed an exemption on those costs?

Also, if indeed I owe this money back, can the employer legally withdraw the amount from my final paycheck? Just an FYI, I have given them a 14 day notice.

Thank you for any help you can provide!

It sounds to me like they're only talking about the cash advance. Have you asked them?

And they can't deduct it from your final pay without your written authorization. Did the agreement mention deduction from your pay, or just that you had to repay the money, with no specifics about the method of repayment?

How the company accounts for this on their books and taxes is, excuse me for sounding harsh, really none of your business.

The agreement stated that "at our option, you authorize said amount, in whole or in part, to be deducted from any payroll funds due to you at the time your employment ends" so I am assuming they will take it from my last paycheck. My question was more the legality in CA, whether CA Labor Law superceded any signed agreement.

As far as the tax issue, I was just curious as to how the company could charge a total expense to me, when they didnt give me the funds to pay for the total expense, directly. If they do indeed get a tax break for relocation funds, accepting the whole amount back would seem questionable...but thats in my humble opinion.

Actually, I don't think they do get a tax deduction for this (it's not wages, in the expense definition of the word), so it's really a nonissue, especially for you.

Generally speaking, such an authorization would not be a violation of California law, but I've made that assumption before, and I've been wrong. :confused: California is a whole different animal that the rest of the country. Our CA attorney(s) should be along shortly and can give you the real scoop.