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Discussion

New Grad Contract

Has anyone out there ever heard of this? I was offered a position which is requiring me to sign a two year contract that basically is to my disadvantage in everyway....I know that RN's who get sign on bonuses may sign a contract saying that if they leave before "x" amount of time, they have to pay the bonus back, but never a "new grad contract". The contract is saying that if they let me go for any reason or if my hours change to part-time, I have to pay them an obscure amount of money...it doesnt specify who requests the change from full to part time status, so if they cut my hours back, I would liable to pay them. This scares me even more than the fact that I may be stuck working somewhere for 2 years that I hate.....Any thoughts?

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    I'm confused. Are they giving you a sign-on bonus?

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    • Author

    No, I'm just saying that is the only time I have heard of having to sign a contract...sorry for the confusion.

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    The 2-yr commitment contract is very common in my part of the country - for an new grad who is participating in a formal training program. These programs are very expensive and hospitals need to discourage turnover before they can recoup their investment. Repayment is usually on a sliding scale, based on how long you stay. If you fail to repay, you are hit with a 1099 - (which counts as "income" and you have to pay taxes on it) and you are categorized as "not-eligible for rehire", which looks like a termination on your employment record.

    The agreements normally do not require any repayment if the employer decreases working hours (FT to PT or PRN), terminates or eliminates the new hire's job. It only requires repayment if the employee originates these changes.

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    • Author
    The 2-yr commitment contract is very common in my part of the country - for an new grad who is participating in a formal training program. These programs are very expensive and hospitals need to discourage turnover before they can recoup their investment. Repayment is usually on a sliding scale, based on how long you stay. If you fail to repay, you are hit with a 1099 - (which counts as "income" and you have to pay taxes on it) and you are categorized as "not-eligible for rehire", which looks like a termination on your employment record.

    The agreements normally do not require any repayment if the employer decreases working hours (FT to PT or PRN), terminates or eliminates the new hire's job. It only requires repayment if the employee originates these changes.

    Thank you HouTx...I would not have as much of a problem with it if the only stipulation was that I had to work there for two years...The other terms (change from fulltime status, termination (with no just cause needed) are the ones I am more concerned with....

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    Don't do it. There's a reason they're trying to force you to sign a contract that puts you at a disadvantage. I strongly recommending looking into the hospital, the turnover, talking to staff. And if it's Beverly Hospital or Kindred Hospital, RUN.

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    • Author

    thanks everyone...i decided not to take it...not worth it and everyone working there seemed miserable

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