Is a contract stating I will repay an employer one month salary if I do not commit to a predetermined length of time binding? I am an employee not 1099.

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Is a contract stating I will repay an employer one month salary if I do not commit to a predetermined length of time binding? I am an employee not 1099.

My employer requested I sign a contract before employment however it was submitted to them without my signature and now they are requesting I sign it, after 4 weeks of employment. It states I must provide the standard 2 week notification but it also states ‘ But if I do not meet the term of my contract 12 months and I resign before the contract is up I will repay them the sum of one month salary’

Is this binding and legal?

Asked on July 27, 2016 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

1) Yes, the terms you describe are completely legal and enforceable: employees can agree contractually to repay certain amounts to their employer if the leave before a certain time period is up.
2) If you did not sign it, it's not currently enforceable against you, BUT...
3) They can require you to sign it as a condition of continued employment, and can terminate you if you refuse to sign. Contracts like this (or non-competes, too) can be signed at any point during employment--they don't have to be signed at the outset--and employers can terminate employees who will not sign.


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