Wednesday, June 24, 2009

Read before you sign

This is a long question, so I'm going to break it into parts and answer each part separately. Oh, and Class Factotum, this is for you, since you asked for more posts. I've been busy learning German. I conducted an entire transaction in German yesterday--granted it was just dry cleaning, and I mainly said, "Ja, ja!" but importantly, I knew what she said. At least, I think I did. Maybe when I go to pick up the pants, they'll be dyed purple or something. Anyway, back to our regular topic.

My husband gave his 2 week notice on Tuesday because we have decided to move back to the UK. He found out today, Friday, that they are planning to send him home on Monday. They said they are not firing him that they accept his resignation and are moving the last day up!! This was all unofficial as the nice HR lady told him in confidence, his boss does not plan on telling him until monday a.m.!!!! That means he loses a weeks pay - can they do that?? The said he is an exempt employee so they are not obligated to pay him the remaining days if they don't want to!

I don't have any idea what being an exempt employee has to do with this. But, in the USA almost everyone is an at will employee, which means you can be terminated at any point. No severance is owed. No notice required. No cause needed. Should they pay him out his notice period? Of course. It's the right thing to do. Do they have to? Perhaps in your state, but (in my thoroughly non-lawyerly way) not in all.

The boss is a jerk with a capital J. Technically, he can probably file for unemployment, but that may be a bigger pain than it's worth.

Also, the tuition reimbursement. my husband says that they are going to try to get him to rollover his 401k to guarantee the tuition reimbursement that he owes. I don't mind paying it but in my own time please. What are his obligations to pay it on the spot!

I haven't seen the paperwork he signed for the tuition reimbursement, but I doubt it said anything about taking money from his 401k. I understand why they want him to do that--it's very difficult to get money from someone once they've quit. Please understand, he owes the money and he should pay it. But, they know that it will be nearly impossible to get it from him if he doesn't wish to pay up--especially since you are moving to a different country. The cost of legal proceedings would be too high to bother with.

Repay the amount owed according to the contract he signed. Don't let them take the 401k money. Penalties are way too high for that kind of thing.

Lastly, he works for a credit union and we have a car financed through them. The car loan is in both of our names but as an employee they gave him 2% off the regular rate. He has heard that they will increase the rate to whatever the standard rate is now. Is that legal?? I have read over the contract and no where does it state that the rate given is an employee rate!

Speaking as a non lawyer, of course that is legal--as long as it was in the loan documents signed. If it wasn't in the loan documents, then it's not legal. Easy-peasy. Pull out your documents and look.

Don't sign things you don't understand. Ask questions before signing. If your boss is a jerk while you work for him, he's likely to be a jerk when you resign. And have fun in the UK!

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