Denver, CO asked in Employment Law for Illinois

Q: When to give resignation notice to avoid signing bonus clawback.

I received a $15K signing bonus for a new job last year. I signed an contract agreeing to pay back the bonus if I voluntarily leave within 12 months from date of hire.

I started Oct 11 2021. I accepted a new job offer and would like join on Oct 17th. If I give my two week notice stating my last day as Oct 14th, I would be employed for 12 months.

If I give my notice on Sept 30 stating my intent to leave on the 14th, does that constitute voluntary termination of employment before 12 months even though I intend to be employed past the 11th? If they decline my 2 week notice and force me to leave before the 11th, is that involuntary termination?

Should I wait till Oct 12 2022 to give my notice? I want to do right by might current employer and give them as much notice as possible, but dont want to be stuck paying back the bonus as a result.

Related Topics:
1 Lawyer Answer
James G. Ahlberg
James G. Ahlberg
  • Rochelle, IL
  • Licensed in Illinois

A: It would be best to wait until October 12 to give notice to eliminate the potential claim that you must pay back the bonus. Think of it as being paid $15,000 to work those extra few days.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.