What to do if I accepted a job with an agreement that my employer would pay for my Master’s degree but now I want to leave the company?

UPDATED: May 6, 2013

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What to do if I accepted a job with an agreement that my employer would pay for my Master’s degree but now I want to leave the company?

The hiring contract wording is “The cost of educational courses and degree completion for your Master of Accountancy will be 100 percent paid for by HBC… If the eligibility standards are not met (see attachment), you, the employee, will reimburse HBC for the cost.” Every semester, a contract (attachment referenced above) was signed with the wording “If an employee voluntarily exits the company, they are responsible for repayment of any tuition assistance received from HBC within the past 24 months.” However, the company filed for Chapter 11 bankruptcy half-way through and is no longer named HBC. Am I still liable to repay if I leave?

Asked on May 6, 2013 under Employment Labor Law, Kansas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

From what you write, you would probably still be resonsible to repay the company:

1) Bankruptcy affects what your company has to pay others; it does not affect what others (such as you) have to pay it.

2) A company's name does not affect the validity or enforceability of its contracts and other agreements.

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