Location: California, USA
My friend is resigning as an employee of a large corporation. During his time there, he used the company's tuition assistance benefit program which covered the cost of obtaining an M.S. degree at a local university. Before enrolling in the program he signed an agreement that includes this wording:
In recognition of the financial commitment that XYZ is making towards the employee's education, the employee agrees to stay employed at XYZ for a minimum of two years after his/her coursework is taken or completed. If the employee should voluntarily leave prior to the end of this 24-month period or while still working on the degree, the employee will reimburse XYZ for all costs associated with this degree program.
Further, there is no verbiage outlining consequences should the employee fail to pay this assistance money back.
The agreement does not say anything about withholding wages from paychecks and I have read that in CA it is illegal to do so without employee consent anyway.
Does anybody know if either federal or state law prevent this type of agreement to be enforced? Anybody with experience either way on this type of agreement?