After spending significant money on training sessions, employers may feel the investment was a waste if an employee leaves shortly thereafter. Some employers require workers to pay back the cost of training in that situation, but there are some legal pitfalls to consider before enforcing that type of policy.
"In some cases, the facts and circumstances may make it worthwhile to pursue collection, but in many cases, employers would be wise not to do so," said Daniel Pyne, an attorney with Hopkins & Carley in San Jose, Calif.
Recouping training costs is permissible if the training is voluntary and related to job skills, and if the employment contract stipulates repayment for training costs if an employee leaves the job within a certain time period. Employers can get an employee's written consent to recoup voluntary training costs at the time of hiring or before the training starts.
Recouping the cost "depends on what kind of agreement you have with employees about that training and whether that training is unique. It depends on the type of training," said Courtney Leyes, an attorney with Fisher Phillips in Memphis, Tenn. "I represented a hair salon where the owner provided schooling for his stylists. He sought to recoup those costs. That is training that is unique to that industry."
Making the wrong decision about training costs can lead to problematic lawsuits for employers. "They could find themselves in a wage and hour dispute with that employee," Leyes said. "It...
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