Employer tuition assistance clawback upon resignation
<p>Location: California, USA</p>

<p>My friend is resigning as an employee of a large corporation. During his time there, he used the company's tuition assistance benefit program which covered the cost of obtaining an M.S. degree at a local university. 
Before enrolling in the program he signed an agreement that includes this wording:</p>

<blockquote>
  <p>In recognition of the financial commitment that XYZ is making towards
  the employee's education, the employee agrees to stay employed at XYZ
  for a minimum of two years after his/her coursework is taken or
  completed. If the employee should voluntarily leave prior to the end
  of this 24-month period or while still working on the degree, the
  employee will reimburse XYZ for all costs associated with this degree
  program.</p>
</blockquote>

<p>Further, there is no verbiage outlining consequences should the employee fail to pay this assistance money back.</p>

<p>The agreement does not say anything about withholding wages from paychecks and I have read that in CA it is illegal to do so without employee consent anyway. </p>

<p>Does anybody know if either federal or state law prevent this type of agreement to be enforced? Anybody with experience either way on this type of agreement?</p>

<p>If the employee triggers this clause with their resignation they will owe the value of the tuition fees paid as a debt to their employer. The employer can seek enforcement through any of the normal methods including suing in a court of competent jurisdiction.</p>

united-states employment california