Employment promotion contingency

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Topic Author
bestisfree
Posts: 55
Joined: Thu Jan 07, 2016 1:30 pm

Employment promotion contingency

Post by bestisfree »

I have always found the forum so helpful so I am looking for your wisdom again:

My spouse is getting a promotion offer + salary increase with contingency. The offer is contingent on my spouse "staying with the company for at least another year," and "supporting the re-compete" of some current contracts that my spouse helped to get.

Q1: Is the contingency enforceable?

On the surface the contingency looks reasonable - and my spouse would definitely try to meet it in good faith. But I was thinking what if my spouse was offered a job opportunity at some other company or if for my work we had to move, things change. The offer letter does not stipulate penalties if my spouse, for some reason, fails to or becomes unable to stay with the company; so I am wondering in those cases what might be the implications, legal or non-legal?

Q2: I am actually wondering which state has jurisdiction over this employment contract.
The employer is in state A and we live and work in state B. Both state A and B are employment-at-will states.

Q3: Can my spouse still be let go at the employer's will?

thanks in advance.
HomeStretch
Posts: 6561
Joined: Thu Dec 27, 2018 3:06 pm

Re: Employment promotion contingency

Post by HomeStretch »

The answers will depend on the state(s).

Consider a consultation with an employment practices attorney who can review the draft agreement and advise your spouse.
Topic Author
bestisfree
Posts: 55
Joined: Thu Jan 07, 2016 1:30 pm

Re: Employment promotion contingency

Post by bestisfree »

HomeStretch wrote: Thu Jun 03, 2021 7:40 pm The answers will depend on the state(s).
Consider a consultation with an employment practices attorney who can review the draft agreement and advise your spouse.
Yes I think so as well - except I don't know whether I should find an attorney in the employer's state or our state (where we live and site of performance)... whose jurisdiction should we care about?
Silk McCue
Posts: 5562
Joined: Thu Feb 25, 2016 7:11 pm

Re: Employment promotion contingency

Post by Silk McCue »

Another perspective. A year will pass quickly. If she likes her job and is pleased/happy/excited about this clear recognition of her value just take the job and deal with whatever comes up. It seems very likely none of the scenarios you are imagining will arise.

Cheers
humblecoder
Posts: 690
Joined: Thu Aug 06, 2020 8:46 am

Re: Employment promotion contingency

Post by humblecoder »

bestisfree wrote: Thu Jun 03, 2021 7:34 pm On the surface the contingency looks reasonable - and my spouse would definitely try to meet it in good faith. But I was thinking what if my spouse was offered a job opportunity at some other company or if for my work we had to move, things change. The offer letter does not stipulate penalties if my spouse, for some reason, fails to or becomes unable to stay with the company; so I am wondering in those cases what might be the implications, legal or non-legal?
I am not a lawyer (contract or otherwise).

A few years ago, I was offered a relocation package from my current employer. Basically, I received a cash bonus plus reimbursement of various relocation fees in return for agreeing to relocate. I had to sign a contract which stipulated that if I left the company within three years after the contract was executed, I would have to reimburse my employer for some percentage of what I got from the deal: 100% if I left within a year, 50% if I left within two years, and 25% if I left within three years. My company is a megacorp with lots of lawyers on the payroll and retainer, so I have no reason to believe that such a contract is NOT enforceable.

It is strange, though, that the "offer letter' didn't not stipulate any penalties. I am wondering if there is some separate contract that she would be asked to sign (separate from the offer letter) that DOES specify those penalties. If it were me, I'd ask my employer about whether there is some separate contract that addresses that point.

Regarding whether she can be still be on the hook for these theoretical "penalties" if she were let go, I know the relocation contract that I signed had specific language regarding that. If I left the company for any reason other than death or disability, I'd be on the hook for whatever penalties applied. Again, I'd ask the employer if there is a separate contract that addresses that point.

As an aside, last year, my company offered a voluntary buy-out to a number of employees. The offer included a clause that stated that any penalties due to leaving during that 3 year post-relocation period were waived.

Finally, I will concur that 1 year will go by fast, particularly if it is a position that your spouse enjoys. For me, three years was a little of a slog at first (I was working for a less than ideal manager), but once I was re-assigned to a good manager, the time passed much quicker!
Topic Author
bestisfree
Posts: 55
Joined: Thu Jan 07, 2016 1:30 pm

Re: Employment promotion contingency

Post by bestisfree »

Just wanted to thank everyone for their input!
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