Can I work for another employer if I have an outstanding loan with my current employer?

UPDATED: Jan 13, 2012

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Can I work for another employer if I have an outstanding loan with my current employer?

I am an owner operator truck driver. I purchased my truck from my current employer. I have paid for the truck in full, but have an outstanding personal loan. I would like to take my truck to work for another company. Besides holding the title, does my current employer have a right to keep me from resigning, taking my truck, and going to work for another company?

Asked on January 13, 2012 under Employment Labor Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

As a general matter, owing an employer money, including money on a loan used to purchase a vehicle from them, does not give the employer the right to prevent you from resigning, taking the vehicle, and working for somone else. That said, if the terms of the loan require you to keep working for them until it's paid, or would have the full remaining balance come due if you leave, etc., that would be enforceable. You should discuss the matter in detail with an attorney, including bringing with you all documentation and correspondence about the loan and the transaction for his/her review, to be certain of your obligations before you resign.

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.

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