Sign On Bonus

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Specializes in Progressive Care, Sub-Acute, Hospice, Geriatrics.

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I was hired for a job that came with a sign on bonus. Only issue is that I have never signed anything this crazy before and I don't want to sign on something and I would fall short in the end and pay back more money that will be given. I am sorry in advance because reading these type of agreement baffles and scares me. Also, English is my second language and reading contracts likes this confuses the hell out of me. HR had told me that I do not have to accept the sign on bonus if I do not want to. She even suggested new nurses accept it and some accepts the job without the bonus. The bonus requires me to work full time hours for a year. Can someone explain to me what this clause mean?

Quote

"Employee agrees to pay to **** the sum of $5,000 at the minimum rate necessary to avoid characterization of the loan as a below-market loan under Section 7872 of the Internal Revenue Code of 1986, so amended, in the event Employee ceases to be an employee of **** or fails to meet employment agreement under Section II prior to agreed time frame; either action shall constitute an "Event of Default."

Quote

"If an Event of Default exists under this Agreement, the entire balance
outstanding together with any accrued but unpaid interest or other charges
shall become immediately due and payable and shall no longer be subject to
forgiveness under Section IV of the Agreement. At such time, **** is
entitled to exercise any remedies it may have at law, or in equity, in order to
collect its debt, including the commencement of legal proceedings against
Employee. Upon termination of employment, employee confirms that any and all
remaining balance will be deducted from any eligible paid leave hours and/or
any remaining pay checks, if applicable."

***Correct me if I am wrong. For example, I have been working for 6 months and they give me $2500 but then I end up leaving before the 1 year mark, does this mean that I have to pay back the whole $5000 regardless if they only had given half of that money? Please clarify this for me. I appreciate anyone who comments down below. Thank you in advance.

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It looks like they would be charging interest.  

Very few hospitals enforce these.  It’s not worth it to take you to court for $2500.  They like to scare you with things like this.  They also hope by scaring you, you won’t take it but them still end up staying a year.  

I don’t know that I’d even want to work at a place that goes out of its way to do this.  Red flags are what I see.

5
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Wouldn't take them up on it personally. For what amounts to $2.89/hr it isn't worth the additional entanglement.

I wouldn't assume they won't come after sign-on bonus money.

If you do want to accept it, keep the money easily accessible and don't spend any of it. If you need to leave pay it back and get an invoice showing that it was paid/returned.

5
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Specializes in school nurse.
1 hour ago, LovingLife123 said:

Very few hospitals enforce these.  It’s not worth it to take you to court for $2500.  They like to scare you with things like this.  They also hope by scaring you, you won’t take it but them still end up staying a year.  

I believe I've read MANY posts on AN (particularly re: HCA) in which they HAVE come after nurses for repayment of sign-on bonuses.

What experiences have you had I.e. which corporations did not enforce them?

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Specializes in Psych, Addictions, SOL (Student of Life).
On 1/28/2022 at 9:30 PM, Dani_Mila said:

So, I was hired for a job that came with a sign on bonus. Only issue is that I have never signed anything this crazy before and I don't want to sign on something and I would fall short in the end and pay back more money that will be given. I am sorry in advance because reading these type of agreement baffles and scares me. Also, English is my second language and reading contracts likes this confuses the hell out of me. HR had told me that I do not have to accept the sign on bonus if I do not want to. She even suggested new nurses accept it and some accepts the job without the bonus. The bonus requires me to work full time hours for a year. Can someone explain to me what this clause mean?

"Employee agrees to pay to **** the sum of $5,000 at the minimum rate necessary to avoid characterization of the loan as a below-market loan under Section 7872 of the Internal Revenue Code of 1986, so amended, in the event Employee ceases to be an employee of **** or fails to meet employment agreement under Section II prior to agreed time frame; either action shall constitute an "Event of Default."

"If an Event of Default exists under this Agreement, the entire balance
outstanding together with any accrued but unpaid interest or other charges
shall become immediately due and payable and shall no longer be subject to
forgiveness under Section IV of the Agreement. At such time, **** is
entitled to exercise any remedies it may have at law, or in equity, in order to
collect its debt, including the commencement of legal proceedings against
Employee. Upon termination of employment, employee confirms that any and all
remaining balance will be deducted from any eligible paid leave hours and/or
any remaining pay checks, if applicable."

***Correct me if I am wrong. For example, I have been working for 6 months and they give me $2500 but then I end up leaving before the 1 year mark, does this mean that I have to pay back the whole $5000 regardless if they only had given half of that money? Please clarify this for me. I appreciate anyone who comments down below. Thank you in advance.

Under TOS we are unable to give legal advice. I suggest you have an attorney familiar with employment contracts look this over to determine if this is a sign on bonus or a loan as is implied in the language of the contract. The money you pay for an hour of an attorney's time will benefit you in the future. 

Hppy 

4
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On 1/30/2022 at 3:26 PM, Jedrnurse said:

I believe I've read MANY posts on AN (particularly re: HCA) in which they HAVE come after nurses for repayment of sign-on bonuses.

What experiences have you had I.e. which corporations did not enforce them?

I was told by the CNO at my last hospital that most places don’t enforce them as it costs way more money to try and recoup the money than it is to actually just let them go. 
 

This was the CNO for my state at a very large hospital system in this country.  So it’s somebody in the know.

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Specializes in Psych, Addictions, SOL (Student of Life).
2 hours ago, LovingLife123 said:

I was told by the CNO at my last hospital that most places don’t enforce them as it costs way more money to try and recoup the money than it is to actually just let them go. 
 

This was the CNO for my state at a very large hospital system in this country.  So it’s somebody in the know.

That may be true but HCCA does aggressively go after people who terminate their contract. I had such a a contract with my first hospital Job way back in 2002, I had 6 months left on my contract when I left a specifically asked what amount if any I owed them I think I ended up foregoing my PTO to close it out.

Hppy

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Specializes in Progressive Care, Sub-Acute, Hospice, Geriatrics.

Hey everyone, 

Just an update. I have spoken with the recruiter and she said that this is basically like a loan. Whatever is given to me say within 6 months ( 50% of that bonus) and I leave prior to 1 year, then I owe them whatever amount that was only given to me. If I leave prior to 6 months and I am not given any money, then I do not owe them anything. So, the best thing to do in my opinion is just to put the money aside until I hit that 1 year mark. I am still ambivalent about this issue because I do not know if I will stay within a year because a lot of things can happen, but  as of right now I am expecting to at least stay for that full year.

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Specializes in Specializes in L/D, newborn, GYN, LTC, Dialysis.

Most sign-on bonuses are "caveat emptor". You are right to put that money aside.

Personally, I would not take them up on it. Most places offering these are crap holes to work in.

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Specializes in Progressive Care, Sub-Acute, Hospice, Geriatrics.
On 2/4/2022 at 9:43 PM, SmilingBluEyes said:

Most sign-on bonuses are "caveat emptor". You are right to put that money aside.

Personally, I would not take them up on it. Most places offering these are crap holes to work in.

I know what you mean and I get it. this is another issue why I am nervous because most places who applies and are offering sign on bonuses usually creams out "Stay Away" because maybe a lot of nurses does not want the job. I am nervous but if I do not like the job then probably look for another. Who says nurses are stuck in one place? There are many jobs out there. I just want to succeed in this job and also get that acute care nursing experience.

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