Contract Issue

linearthinker, DNP, RN · Apr 23, 2011

Years ago when I was in a facility that offered like programs, yes, we would have gone after you for the 10K. The way we did it was obtain a judgment (easy as pie with a signed contract, takes less than 5 minutes in front of a judge) against you, and then filed to garnish your tax return. Once that was done, we usually offered the ex-employee an opportunity to settle for 15% less. They had 30 days to pay the reduced settlement. We did a few times to make the point and discourage people from signing contracts they could not fulfill or suffering from "buyers remorse." In short, we made an example of a few people, everyone else took heed and it wasn't really necessary after that. Will your facility do that? I have no idea.

If you really want out and aren't just suffering from a brief moment of panic, I think you need to take the contract to an attorney for a legal opinion about your options. Otherwise, suck it up cupcake.

rkitty198, BSN, RN · Apr 23, 2011

The grass may not be greener on the other side, remember that.

Lucky0220 · Apr 23, 2011

Sorry, never even thought of that. OP, is that the case? I am older and never encountered this paying for orientation and training stuff. I guess if that is the case the hospital might not charge the entire 10,000 for her less than 2 weeks. I suppose all she can do is ask.

Maybe next time, you will carefully read the OP's and other's post before you slam someone with such vitriol! :down:

MarkonCRT · Apr 23, 2011

Does anybody reading this post have any problems with the integrity or moral ethics of HR springing an employment contract on a new hire that most likely has limited contract experience?

I can't t think of any other profession that operates in this manner when hiring an EMPLOYEE and not a contractor.

lckrn2pa · Apr 23, 2011

You need to think long and hard about what your going to do, there are many implications of breach of contract situations. After reading your post carefully, as some have stated, I arrived at the conclusion that the OP did receive money for said contract "Has anyone gotten out of a contract without paying back $10,000? I am hoping they will work with me but I have no clue if they will." This statement suggest the the OP received money. The OP is also confused about the time frame of the contract. "After the completion of the internship, the employee must remain in the Clinical Nurse I position for 12 months, otherwise the employee must repay $10,000." No where in this statement does it suggest you could walk away. By this statement the 3 month internship is included in the contract so it is essentially a 15 month contract. They can fire you at any time and you would still be responsible to pay back any money received. You must also consider the fact the the 10K is a BONUS and therefore taxed as a bonus ie uncle sam sticks his whole arm in your cookie jar so you actually would receive less money but still have to pay back the entire 10K. If the so desire they can also demand their money back in whatever time frame they want and if you do not meet the deadline guess what, your now in default which equals big hit on your credit history. I know all this because about 19yrs ago I was in a similar situation with a hospital. Took their bonus, 2yr contract, 7 months short of end of contract I was fired along with 3 other nurses that were contract nurses. We all were fired over trivial things but bottom line was we all had other jobs lined up and were leaving at end of the contract. Unfortunate for us, we were all young and didn't read the contract as close as we should have and turned out the 10K we got was deducted at semi-annual periods and the last year 75% of the loan came off. So, it was set up with 1000 after 1st 6 months, 1500 after 2nd 6 months, 2500 after 3rd and 5000 at 2yr mark. Since we did not make it to the third 6 month mark we ended up getting hit with a 7500 pay off. 90 days to pay it back and working as a RN in 1993 at $12/hr, it's not an easy feat to come up with that kinda money so we all ended up defaulted. BIG credit hit. So you need to think long and hard and read your contract and talk to HR about the consequences of breaching and make the your decision based on whats best for you and not on what a bunch of anonymous people on some message board tell you. Good luck in your decision and future.

CompleteUnknown · Apr 23, 2011

Does anybody reading this post have any problems with the integrity or moral ethics of HR springing an employment contract on a new hire that most likely has limited contract experience?
I can't t think of any other profession that operates in this manner when hiring an EMPLOYEE and not a contractor.

I do. Like I said before, I think it's horrifying.

Lckrn2pa - I think it's post 15 where the OP says that it wasn't a sign-on bonus and that she didn't receive any money. She says she signed a contract agreeing to pay the hospital $10,000 if she leaves her position before the end of the contract period.

elkpark · Apr 23, 2011

Does anybody reading this post have any problems with the integrity or moral ethics of HR springing an employment contract on a new hire that most likely has limited contract experience?

I don't know about that -- I wouldn't sign a contract like that myself, but RNs are, pretty much by definition :), independent adults and presumably capable of making their own choices and decisions about employment, contracts, etc. Would you suggest that a car dealership would be out of line to offer to sell the OP a car with a financing contract, or that it would be unethical for someone to sell the OP a house (with a mortgage) because s/he "most likely has limited contract experience"? What about student loans? Those are contracts, and, presumably, most students taking out student loans have "limited contract experience," so, is it immoral or unethical to offer student loans?

Many aspects of modern, adult life involve entering into contracts. IMO, it's up to the individual to decide what her/his "comfort level" is with this kind of situation, and, if the OP isn't already clear on how this sort of thing works, it's time to figure it out. However, having made the decision to sign the contract in the first place, the OP is now bound by the conditions of the contract s/he chose to sign.

lckrn2pa · Apr 23, 2011

I do. Like I said before, I think it's horrifying.
Lckrn2pa - I think it's post 15 where the OP says that it wasn't a sign-on bonus and that she didn't receive any money. She says she signed a contract agreeing to pay the hospital $10,000 if she leaves her position before the end of the contract period.

Oops, guess I didn't read it that carefully. That's what I get for trying to post after reading pediatrics for 5 1/2 hrs lol. If your that miserable then I'd talk to an attorney. Find an attorney that offers free consultation and go see one just to explore your options. Sorry for the mess your in.

morte, LPN, LVN · Apr 23, 2011

hmm since you didn't get the specialty you were promised, nor the shif that you were promised.....did not the hospital break the contract??

elkpark · Apr 23, 2011

hmm since you didn't get the specialty you were promised, nor the shif that you were promised.....did not the hospital break the contract??

Generally, not unless the hospital violated the conditions written into the contract. AFAIK, verbal assurances aren't usually considered legally binding.

BrookeeLou_RN · Apr 23, 2011

Maybe next time, you will carefully read the OP's and other's post before you slam someone with such vitriol! [/quote
So sorry, she still has a contract and I hope she has to pay.OP asked for opinions and she even said she thought they would be negative. If you don't want to know don't ask!:redpinkhe

BrookeeLou_RN · Apr 23, 2011

Just for the record......OP's original post does not state whether $10,000 was paid up front or to be paid back if she did not complete contract. Still wonder how someone can decide such a thing in less that 11 days.