Can I sue my employer to stop him from sending me to collections?

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Can I sue my employer to stop him from sending me to collections?

I had an accident in a company vehicle on company time that was my fault. My employer had me sign a document saying that I would either pay the deductible or I would lose my job. I quit the job and he sent an invoice saying that I will either pay the remaining balance or go to collections.

Asked on May 14, 2018 under Employment Labor Law, Arkansas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

If you signed an employer-provided document which stated that you would only pay the deducible, then IF you paid that deductible in full, he cannot seek additional money from you: he contractually agreed to accept the deductible as payment in full of the claim. If he takes further action after you paid the deductible in full, you should have a good defense in court and/or have grounds for a breach of contract lawsuit--you since you performed (paid) your obligations under the agreement (contract) he is bound to his obligations, too, such as to accept that deductible as payment in full of anything you might owe. 
If you did not pay the full deductible however before quitting, then you were breach of your own obligations; being in breach, you cannot enforce the agreement; that means that employer may sue you, or send you to collections for, any amounts attributable to your accident which have not been paid by their insurance (e.g. for any unpaid portion of the deductible).


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