I want to leave my job but they paid for my moving, what is my responsibility regarding repayment on my relocation costs?

UPDATED: Oct 1, 2022

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I want to leave my job but they paid for my moving, what is my responsibility regarding repayment on my relocation costs?

I recently got hired by the Company A, fulltime and relocated to work at the Company B. Company B is a client to Company A and Company A provides talent to work on-site at Company B. Company A paid the general relocation cost of $3000 for me to purchase my flight ship my boxes, etc. Company B approved to pay for corporate housing for me to stay until I find my own place up to a total of 2 months. The problem is before 2 months was reached, due to miscommunication and misunderstanding, Company B asked Company A to remove me from the project. So now I’m back at the main office of the Company A and working here on a different project. I’m having a hard time adjusting to the changes and feel very uncomfortable working at the Company A. I want to leave and Im wondering what I owe to them if anything. In the contract, if I leave before a year, I pay back the full relocation cost. In the 2nd year, what I owe will be prorated. What’s included in that

Asked on October 24, 2018 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Generally, relocation cost would include housing assistance, subsidies, payments, etc. you received as well as the moving, travel, etc. expenses--it's all part of the cost to relocate you. But you only have to pay those costs incurred by the company you had the contract with (A); company B cannot take advantage of a contract between you and company A, since a contract only applies to the parties to the contract. So if, as you appear to indicate, B paid for housing, not A, you would not have to repay the housing costs.

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