Strategy for Required Repayment of 'Bonus Advances'... any advice?

Employment Law Forum
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Hi all, thanks in advance for any help. I started working with a company based in CO in 2023 and have been working remotely from FL and now MI. They initially hired me as an exempt employee with 25% of my pay as quarterly, non-recoverable bonuses. A few months in, they changed the bonus structure to annual, offering ‘advance bonuses’ for 2024 to ease the transition. But if I leave before March 2025, I’d have to pay all bonuses back. They also made my position non-exempt.

As the primary breadwinner, I had to take the advances, but now that I’m leaving, HR says I have to pay them back and will reduce my final paycheck to minimum wage, eating into my accrued PTO too. They’ve said the required payback amount will increase if I don’t pay by the end of 2024.

I’m worried I’m stuck here. Has anyone dealt with something similar? I have documentation, but the language from HR has been vague. Any advice on how to handle this?

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That sounds really rough. Have you talked to a labor attorney? They can help clarify your rights in this situation.

3

Isan said:
That sounds really rough. Have you talked to a labor attorney? They can help clarify your rights in this situation.

I haven’t yet, but I’m considering it. I just want to know if I have any options.

4

Definitely keep all your documentation. If you have email exchanges, that can help a lot if things get legal.

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Zoren said:
Definitely keep all your documentation. If you have email exchanges, that can help a lot if things get legal.

I’ve saved everything I could. Just not sure how useful it will be.

6

Look into your state’s labor laws. Some states have rules about how much they can deduct from your paycheck.

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OQueen said:
Look into your state’s labor laws. Some states have rules about how much they can deduct from your paycheck.

I’ll check that out! Thanks for the tip.

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It might help to negotiate with HR regarding the repayment terms. If they’re vague, push for clarity on how much and when.

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Jackteagarden1 said:
It might help to negotiate with HR regarding the repayment terms. If they’re vague, push for clarity on how much and when.

Good idea. I’ll ask for more detailed info in writing.

10

You could also consider contacting your state’s workforce agency. They might have resources or guidance on how to deal with this.

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Frost said:
You could also consider contacting your state’s workforce agency. They might have resources or guidance on how to deal with this.

That sounds like a solid plan! I’ll look into that too.