Sign-on Bonus contract terms

[Keshet]

I would be interested in hearing the contract terms other hospitals offer on sign-on bonuses, after my own recent (bad) experience with one.

I recently accepted a full time position in this hospital. At the time of interview, offer, and acceptance, there was no mention of a bonus nor of any commitment. When I started work, and filled out all the papers in HR, they said I was "eligible" for a sign-on bonus with a 4-year commitment and to speak with my supervisor if I was interested. I did, and she wasn't even aware of it, but checked into it and then came back and said I was eligible and gave me a contract and a separate promissory note, both already signed by 4 administrators of the hospital.

I looked it over for a day, and there were terms that made me very uncomfortable. Such as:

"Recruit agrees to execute a Promissory Note made payable to in the amount of bonus which will expire unpon the completion of the four years of service."

"If prior to the completion of four years of service, Recruit resigns, quits, self-terminates or otherwise leaves the service of for any reason including forced termination initiated by , Recruit agrees to pay the $7500.00 Bonus that he/she received in full within 90 of separation."

"If Recruit is terminated for just cause prior to the completion of four years of service, Recruit agrees to pay the $7500.00 Bonus that he/she received in full within 90 days of separation".

Well, my problems were many! First off, they would tax the you-know-what out of it, so that I would net maybe only $4000. Not really a lot of money for a 4-year commitment when you think about it.

Secondly, there was no proration clause. This was my first sign-on bonus, but I have worked several seasonal contracts where they have a monthly stipend bonus and there is always a proration clause, where if you don't finish the contract, you owe them a prorated amount based on how much time you did finish.

Thirdly, I was hired for a newly created position in this hospital. What if they eliminated the position and did not have another comparable full time position? What if I got sick with some longterm illness or injury and had to leave? Not only would I be cash-strapped, but I would have this debt to the hospital!

Lastly, a legal promissory note? In my mind, that then makes it a loan, and not a bonus. In fact, there would be interest (at an unspecified rate) if not paid back within 90 days, and clauses about having to pay their legal expenses if I defaulted and they had to collect. This was not a bonus!!

I asked them if we could modify and reword the contract, and they said no. So I told them that I would decline the bonus, thank you very much for the offer, etc. I kept the original unsigned contract in my possession.

There is more to the story. In a nutshell, they actually paid me the bonus by direct deposit to my bank account, after I had verbally declined it! And then (I felt) the HR guy tried to coerce me into accepting it and signing the contract, even after I had declined it.

(I gave the net amount back, and they finally agreed that, since it was their "mistake", to be responsible for getting the taxes back from the IRS. (I hope it doesn't screw up my taxes for this year!))

My question for you is this: For those who had received sign-on bonuses, what kind of terms did they give you? What was the length of your commitment? Was there any kind of prorated schedule if you left before your commitment? Could they initiate a "forced termination" and then demand the money back? Did they make you sign an actual legal promissory note?

I'm really interested in hearing how other hospitals handle this. Thanks!

[crissrn27, RN]

I once received a 4000k sign on bonus with no contract! To think that you would sign away 4 years of your life to these folks, well I think that is unrealistic. A year, maybe, I can do anything for a year. But the 7500k=4 years, no way.

BTW, I won't even start on the trying to coerce you into taking it. Easy to see that they need the nurses! And will try to keep them in what ever way they can.

[coolvibesRN]

The hospital worked before had a 7500 bonus with relocation assistance up to 1500. The contract was for 2 yrs. If you left before 1 yr, you have to repay it on a prorated basis. So the count the time youve spent and the amount they paid you already. They didnt pay it all upfront. I think it was 1500 after internship/orientation, then, 2500 after first yr, and the rest after2 yrs. There was no legal promisory note to sign except the contract.

I dont see why they give 7500 for a 4yr commitment. Thats ridiculous It isnt even prorated???

They trying to get easy money back from workers. :nono: Why would they deposit the money without your consent? Good luck. I definately think you did the right thing.

[justme1972]

To give you an idea of comparison, a local hospital around here, is giving not only a $10,000 cash bonus but ALSO a car for a 4-year commitment...and if you leave before then, it's pro-rated.

[Keshet]

Thanks for the responses so far! That confirms for me that turning it down (and giving it back when they gave it to me anyway!) was the right thing to do. The HR guy tried to tell me that "all hospitals" do it this way! I didn't think so!

[RN4PatientCare]

4 years!!!! OMG! I signed a 18 month contract and regret it....I can not imagine 4 years.

I am receiving a $2000 bonus spread out over a year. However, since I went through a 12 week internship, I would have to pay the $2000 plus another $7000 back (9 grand total).

Next time I take a job...they can keep the bonus unless there is no contract attached.

[mom2michael, MSN, RN, NP]

We are currently doing $5K recruitment bonus in which is paid out in full to you after your co-worker you get to work there works 2 paychecks. If they leave or do not work out otherwise, you still keep your money.......You can split it with your friend if you so desire, which is what most people are doing.

There was once a facility I worked during NS that offered a $10K sign on bonus - I worked there 2 weeks and quickly realized - it was blood money.

[llg, PhD, RN]

My hospital does not have a sign-on bonus ... but instead, offers a retention bonus. You get the bonus on your anniversary date at intervals throughout your length of employment. As your seniority increases, so does the amount of the bonus.

By giving the bonuses this way, there is no need for a contract and "no strings attached" to the bonuses. If you stay long enough to reach your anniversary, you get some extra money. If you leave prior to your anniversary date, you don't. It gives you an incentive to stay, but there is no "punishent" if you leave and no hassles with paperwork, taxes, etc.

I think it is a better idea than giving bonuses "up front" and then having to deal with all of the possible "what if'" scenarios in a contract.

[TazziRN, RN]

The only commitment I signed was for a new grad preceptorship: in return for the 12-week class I had to commit to an additional 18 months. I have never been offered a bonus but the hospitals that do offer bonuses (to my knowledge) pro-rate the payback rather than wanting the whole amount back.

[HikingNinja, BSN, MSN, DNP, RN, APRN, NP]

To give you an idea of comparison, a local hospital around here, is giving not only a $10,000 cash bonus but ALSO a car for a 4-year commitment...and if you leave before then, it's pro-rated.

OMG! Where is that? Cause I'm moving!!!

Dee

[purplemania, BSN, RN]

the facilities in our area pro-rate any bonuses.

[Daytonite, BSN, RN]

i received a $5,000 sign-on bonus at one job that was paid in three installments over a six month period and always after i "served my time" so to speak. the first installment was after 1 month and it was $1,000. the second installment was $1,500 after the third month. the final $2,500 was after the sixth month. they were all taxed because it is technically income.

whatever lame brain came up with that sign-on bonus must have been smoking something! i wouldn't have signed it either. but, i would have let the money accumulate interest in my bank account for awhile until they asked for it back. hee! hee!