Lubbock, TX asked in Employment Law for New Mexico

Q: Do I have to repay a relocation package if I was misled into relocating?

I was told my plant in Pennsylvania would be shutting down soon, and that I would be doing the company a favor in Relocating to New Mexico. I agreed under the circumstances that my plant was shutting down. I had to sign a repayment agreement if I were to quit or get fired within 2 years. I quit after 5 months. 50% of my staff was let go, and another 2 quit. The plant in Pennsylvania started hiring more people and brought in new business, while the plant in New Mexico, lost employees and production. My last check, PTO hours, and vacation hours were withheld. I never received a letter stating how much I owed or anything.

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1 Lawyer Answer
Trent A. Howell
Trent A. Howell
  • Santa Fe, NM
  • Licensed in New Mexico

A: Generally, the answer would depend on the specific terms of your repayment agreement. In some situations, New Mexico does recognize a claim of "fraud in the inducement" of an agreement as grounds to void the agreement. Generally, New Mexico Statutes Section 50-4-2 prohibits an employer from any deductions against a paycheck other than for taxes and "except as may be specifically stated in a written contract of hiring entered into at the time of hiring." Generally, the same statute requires an employer to provide a written statement/receipt at the time each paycheck is due, itemizing all deductions withheld from gross pay. Whether these laws apply to you depends on the specific details of your employment.

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