Employee Repayment Agreement

On appeal, Hassey argued that the refund agreement violated FLSA`s minimum wage and overtime requirements because he had not received his wages unconditionally. In particular, he submitted that he would be paid during his activity under the repayment agreement on the ”condition” that he reimburse the training costs if he left before the expiry of a five-year period. The court rejected Hassey`s reasoning. The refund agreement prompted staff to stay in the policy. The Tribunal found that the mere fact that the reimbursement agreement increases the change of employment does not mean that the employee`s wages were not paid ”freely and clearly”. On the contrary, Hassey received his salary during the training, and no deduction was made on his salaries for training expenses. You have the right to deduct money from an employee`s salary if you have recently made a simple overpayment. Talk to them and let them know how you`re going to get it back. In 1997, the employer Kenny Hassey proposed a conditional job offer as a police officer. The conditional offer was in accordance with the agreement, requiring Hassey to reimburse $US 8,000 in training costs if he left the policy within five years. Hassey`s repayment obligation would decrease by 20% per year and remain in the policy. Jackson Lewis P.C.

950- Lawyers who are located in major cities nationwide, has been focusing since 1958 on labour and labour law and identifies them consistently and reacts to new ways of cutting down labour law. We help employers develop proactive strategies, strong strategies and business-oriented solutions to cultivate high-level, dedicated, stable and diverse employees, and we share our clients` goals to focus on inclusion and respect for each employee`s contribution. For more information, see www.jacksonlewis.com. The city of Oakland violated the Fair Labor Standards Act by depriving a former police officer of the last check to cover part of his training costs, the California Court of Appeal ruled. City of Oakland v. Hassey, A116360 (Cal. Ct. App. June 17, 2008). The court also ruled that an agreement on reimbursement of training costs under the FLSA was legal. The employer selects and sends police apprentices to the Oakland Police Academy. To encourage police officers to remain in the police force, the employer has reached an agreement with the Oakland Police Officers Association to ask officers to reimburse training costs when they leave the police department before five years of service.

The agreement also provided: ”The refund is due and payable at the time of separation, and the city deducts from the employee`s last cheque all amounts owed under this provision. If this deduction does not fully reimburse the city`s expenses, the balance is due and is due. If you can`t agree on a repayment plan, you shouldn`t just deduct money from your wages. It is best to talk to the employee first and agree on how the money is refunded. For example, a wage deduction or bank transfer. If necessary, you can put in place a payment plan to help your employee with his finances. This is especially useful if they are liable for a large amount or if you have not realized that you have made payments that are too long. Hassey also argued that the employer had unfairly withheld his last pay cheque. On this point, the Court of Appeal agreed. The FLSA requires employers to pay at least the legal minimum wage to their employees at the federal level.