Can an employer make you pay back training costs?

Employers can only deduct money for training courses if it was agreed in the contract or in writing beforehand. For example, an employer could ask someone to agree in writing before a training course to pay back costs if they leave within 6 months.

Can employers charge employees for training?

If an employer requires you to have training as a condition of employment, the employer does not have any obligation to pay for the training because it occurred before you were hired. This includes education required for a career. You must pay for any courses or degrees required for the job.

Are training agreements legally binding?

Agreements to repay your employer for training costs are valid and enforceable. That means that if there is a contract to repay your employer any training costs they paid for you in the event you quit, then if you do quit, you must repay them.

When an employee leaves can you recoup their training costs?

Employers sometimes attempt to recoup the cost of such training from employees through various means, but if an employer requires an employee to undergo training, it cannot force the employee to bear any portion of the cost, even if the employee resigns shortly after completing the training.

When do employers demand repayment of training costs?

When the employee quit (and ultimately joined a competitor brokerage), the employer demanded repayment of the training costs. After the employee refused, the employer sued.

When to sign up for a training reimbursement agreement?

Up-front agreement. Whether it’s a current employee or a potential new hire, any training reimbursement agreement should be made prior to the employee beginning the program. You may want to advise the employee that the agreement establishes a contract, and encourage them to have their own counsel review the document before it is signed.

Do you have to pay for employee training?

The cost of training, which is mainly for the benefit of the employer and which may be unhelpful to an employee in future employment, is unlikely to be considered a cost which the employee can be required to compensate the employer for, regardless of whether there is a written agreement between the employer and employee.

When is a repayment agreement enforceable by an employer?

An enforceable written agreement with respect to repayment is a minimum requirement. As the cases discussed above reflect, a repayment clause is more likely to be enforceable if the training received by the employee provides them with a benefit beyond their employment with the employer.