Can a company make me pay back relocation expenses?

UPDATED: Jul 12, 2023Fact Checked

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption

Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

UPDATED: Jul 12, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

UPDATED: Jul 12, 2023Fact Checked

If there was no relocation repayment agreement, then your employer probably can’t make you repay the relocation expenses. Even if there is a relocation repayment contract, many employers won’t enforce it if there is a good reason why you left early, perhaps they don’t want to be seen as a hardline employer, or, more likely, it would be more expensive to sue you for the relocation expenses than the cost of the expenses themselves.

If you are concerned, your best first step is to contact an employment lawyer regarding the law in the state where you work. He or she will look at your contract and advise you more fully regarding your rights.

It is also possible that a company has an informal policy of enforcement. For example, the company might have a 2/3rds rule: you leave after 12 months, they’d forget about it. On the other hand, if you left after 6 months, you’d be billed for 2/3rds. References would be withheld until you anted up.

Case Studies: Relocation Expenses Repayment

Case Study 1: No Relocation Repayment Agreement

In this case, Jane relocated for a job position without signing any relocation repayment agreement. After a few months, she decides to leave the company for personal reasons.

In most cases, if there is no contractual obligation to repay relocation expenses, the employer cannot force Jane to reimburse them.

Case Study 2: Relocation Repayment Contract

John signed a relocation repayment contract when he accepted a job offer. However, after a short period, John’s spouse experiences a medical emergency, and they need to move back to their hometown.

In such situations, some employers may choose not to enforce the repayment agreement due to compassionate reasons or practical considerations.

Case Study 3: Employer’s Informal Policy

Sarah accepted a job that required her to relocate, and her contract included a repayment agreement. She left the company before the agreed-upon period due to unforeseen circumstances.

The company has an informal policy of prorated repayment based on the duration of employment. As Sarah left before the specified timeframe, she would be billed for a portion of the relocation expenses.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption

Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption