Can a company demand monetary compensation for having to hire another worker when you quit a job?

Asked on July 19, 2015 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

They cannot do this in the absence of special circumstances (or rather: they can always *ask*, but will not legally be able to make you pay unless one of the following circumstances exists):

1) There was a written agreement between requiring you to pay some amount if you quit (e.g. to repay hiring or training costs spent on you) and the circumstances under which you'd have to pay apply--check any written contract with your employer to see if this is the case, but you most likely do not even have a written employment agreement.

2) You lied to them about your intentions in taking the job, and so essentially committed fraud--e.g. you indicated that you were interested in the job when really, all you wanted was for them to sponsor you for immigration or pay to relocate you or the like, and you quit as soon as they did that for you.

In the absence of a written agreement or fraud, they should not have any grounds to compel you to pay.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.