Hey everyone, I have a question about my friend’s situation at work. His employer is making employees pay for registration fees for a professional certification that’s required for the job. They even make you sign a document saying you’ll pay it back if you quit. They don’t require payback if you fail the exams, but they’re coming after one guy for over $2900! This guy has been a great employee but was denied development opportunities, and now he found a new job in the industry. Is this legal in California?
Is this certification something that can be taken to other companies, like a CPA or FINRA license? Or is it just for this employer?
Ellis said:
Is this certification something that can be taken to other companies, like a CPA or FINRA license? Or is it just for this employer?
It’s both. They need certified employees to maintain accreditation, but the certs also go with the employee.
According to Labor Code 2802, employers can’t make employees pay for required training. There are specific circumstances where repayment is allowed, but it usually involves contracts for educational expenses. Your friend should contact the labor board.
@Perrin
Thanks for the info! It seems like a gray area since they recently offered him a course after denying a raise.
If the certification is substantial and benefits the employee, they might have a legal leg to stand on. But, it sounds like this is more for the employer’s benefit, which complicates things.
Lior said:
If the certification is substantial and benefits the employee, they might have a legal leg to stand on. But, it sounds like this is more for the employer’s benefit, which complicates things.
Exactly! If it primarily benefits the employer, then they shouldn’t be able to force repayment.
It’s definitely worth looking into. Many companies in the area pay for certifications without these agreements. That could be a good argument for him.
Nate said:
It’s definitely worth looking into. Many companies in the area pay for certifications without these agreements. That could be a good argument for him.
I’ll make sure he knows to check that out! Thanks for the advice.
I’d recommend your friend keep all documentation related to this. If it escalates, having everything in writing will be helpful.
Daire said:
I’d recommend your friend keep all documentation related to this. If it escalates, having everything in writing will be helpful.
He’s been saving everything, so that’s good. I hope it doesn’t come to that, though.