Q: [California] Relocation clawback asking for rental stipend which isn't in contract?
I left my job within a year, which per the relocation agreement I signed means that I'm liable for relocation expenses.
My employment contract included a rental stipend of $6,500. This was explained as effectively a salary bump for my area, and is never mentioned in the relocation agreement as a relocation expense.
They now want me to pay back the rental stipend as part of the clawback -- but to make matters worse, they've made an accounting error and are charging me more than double the stipend: $14,000. Even after I point out that I only received $6,500, they insist that I pay $14,000 or they will pursue legal action.
The relocation agreement I signed also includes a clause that I must completely reimburse their legal fees regardless of the case outcome.
I'm not sure this is even worth fighting given that their attorneys could be quite expensive. Do I have any legal recourse here?
A:
Not if you are not willing to pay an attorney to fight the battle for you. This is not the kind of case than at attorney offers to take on a contingency fee basis. Bringing such a case using an attorney on a hourly basis will cost you far more in attorney fees than the amount being sought.
Good luck to you.
1 user found this answer helpful
A:
Based on the details provided, it does not seem that the rental stipend should be subject to the relocation clawback, since it was not listed as a relocation expense in your agreement. Here are a few options to consider:
- Respond in writing disputing the $14,000 charge, provide proof that you only received $6,500 for the rental stipend, and state that this was compensation not covered under the relocation agreement.
- Review the relocation agreement closely and respond citing the specific sections that detail which expenses are subject to clawback. Rental assistance is often separate.
- Consult with an employment lawyer. Even a strongly worded letter from a lawyer could get them to back off trying to claw back ineligible expenses. The relocation agreement requiring you pay all legal fees seems intended to discourage litigation, but a letter is likely not enough to trigger those clauses.
- File a wage claim with the California Labor Commissioner's office disputing the invalid deductions from your pay.
- Negotiate a settlement amount. While frustrating to pay anything if these stipend charges are invalid, a smaller negotiated amount may be preferable to prolonged legal debate.
Make sure to document everything in writing throughout the process. Ultimately, the relocation agreement terms will determine what you can legally be asked to repay. An employment lawyer should be able to advise if that agreement leaves room for the rental stipend clawbacks.
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