Signed Contract as a new nurse

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Would appreciate any and all input. As a new grad, I signed a contract a few months ago to work as an RN in a local hospital for two years in exchange for them training me. Since signing the contract, all employees have taken a pay cut and there is a freeze on salary increases. (my salary is not addressed in the contract)

In the meantime, a wonderful opportunity has come along, in a field I think I would enjoy more, making more money. My question, do you think I can get out of my contract, and not have to pay the penalty $3000? I don't think I can afford that penalty, but I feel I shouldn't have to since I took a pay cut. I'm afraid if I go talk to HR, word will get out to my boss that I'm interested in leaving, and things would get uncomfortable working there.

What do you think?

OP - You say part of your concern at your present job is being laid off due to lack of senority. You would be starting completely over at a new job, so how would it be any different there?

Without having seen the contract I can't be sure, but I would think that if you were laid off you would not have to pay back the $3K since they would have broken the contract, not you.

If you stay in your current job you make less money, but you don't have to pay back the $3K. If you leave, you make more money but you will have a loan to pay back. In the end, it seems the money is a wash, at least for the remainder of the contract. So in my opinion, this has little or nothing to do with money. It's about leaving one position for another that you think you will like better.

I don't think I can afford that penalty, but I feel I shouldn't have to since I took a pay cut.

I'm having trouble wrapping my brain around the above reasoning.

Specializes in ICU / PCU / Telemetry / Oncology.
I'm having trouble wrapping my brain around the above reasoning.

I know what you mean, sounds almost like the same reasoning as "I should not have to pay my credit card since they lowered my credit limit."

:uhoh3:

Specializes in Psych ICU, addictions.
Thanks everyone. Some really harsh comments but that's okay. The reason I am so torn about what to do is because I feel so grateful for the training. Somebody questioned why I was looking for another job if I had already signed a contract. Because I recently took a pay cut, always hear about the serious financial problems of the hospital, and that if there are layoffs, I'll be one of the first to go because it's all based on seniority. Had I known all that before signing the contract, I might not have accepted the position. Not sure. Should I ignore all that and hope for the best because I signed a contract. Don't want to find myself unemployed when I have little mouths to feed. It's not an easy decision. I do appreciate your input.

Some were harsh, yes...but at the same time, did you honestly expect to see pages of, "I agree, you shouldn't have to pay a penalty, it's not really your fault!" replies?

I agree with the others: before anyone signs a contract, it's up to them to fully reseach the facility they are contracting with as well as the terms of the contract, and to clarify any questions that they may have...becuase by signing that contract, they are affirming that not only are they aware of the terms and conditions, they understand and agree with them. New grad or not, one should not rush to sign a contract.

Yes, there are some things that do come up that one can't foresee, such as layoffs and paycuts. If you were to be laid off, then they reneged on the contract and you would not have to pay a penalty. As far as salaries go, if you were guaranteed $X per hour in the contract and they cut your pay to less than that amount, then you can have a case for their breaching the contract. But if no specific salary was mentioned...then it would have been on YOU to clarify any salary issues before you signed.

Again, I'm not sure what the best option is for you to do, whether you should stay where you are or go pursue that opportunity. If you do decide to jump ship, be sure that this new job is guaranteed (that is, you have an official job offer in writing) before breaking the contact. If you rush to quit your current job but then job number 2 decides not to make you a job offer, you could wind up with no jobs and a $3000 bill to pay back.

So take your time on this one. Haste got you before--don't let it get you again.

Good luck.

I would never quit a job without having a firm offer from another employer. I don't know why so many people think I shouldn't be upset about a pay cut. (Almost all of the employees I work with are upset over it and some are looking for a new job.) When you accept a position, I don't think it's a typical question to ask, will you be giving me a pay cut in the very near future? That's absurd.

I would never quit a job without having a firm offer from another employer. I don't know why so many people think I shouldn't be upset about a pay cut. (Almost all of the employees I work with are upset over it and some are looking for a new job.) When you accept a position, I don't think it's a typical question to ask, will you be giving me a pay cut in the very near future? That's absurd.

I don't recall anyone even suggesting that you shouldn't be upset about a pay cut. The problem that many are having is that you don't want to pay back the $3K that you contracted for because of a cut in pay. That's no different from me having to take a cut in pay and then telling my mortgage company that I can't pay back the money they loaned me for my house. It just doesn't make sense. I would be upset about the pay cut, but it wouldn't absolve me of my financial obligations.

Specializes in Addiction / Pain Management.

1. Get lawyer to advise you of your legal obligations.

Most likely if the hospital release you without bias (laid off) then you have ZERO financialresponsibilities

Specializes in Geriatrics.
Would appreciate any and all input. As a new grad, I signed a contract a few months ago to work as an RN in a local hospital for two years in exchange for them training me.

I am lost on this one, please advise. You graduated from school, got your degree, then signed a contract for training?? As an LPN we are often offered contracts where they pay for our school in return for X years of employment with the company. Why would a company want a contract to hire you?? Understandably, I am not sure of the extra training RN's have, that maybe part of my confusion.

I don't recall anyone even suggesting that you shouldn't be upset about a pay cut. The problem that many are having is that you don't want to pay back the $3K that you contracted for because of a cut in pay. That's no different from me having to take a cut in pay and then telling my mortgage company that I can't pay back the money they loaned me for my house. It just doesn't make sense. I would be upset about the pay cut, but it wouldn't absolve me of my financial obligations.

I disagree. It's not the same thing at all. The mortgage company and your employer are two separate entities. Totally unrelated so of course it doesn't absolve your financial obligations.

Listen, if they ask me to pay back the $ I will, but I feel the contract is too one-sided (which is nobody's fault but mine for signing it). Pay cuts, merit increases frozen, understaffed because of hiring freeze, etc. So much has taken place since I signed it. I worry that if I do stay, I may be laid off eventually--of course then I wouldn't have to worry about the $3000 but I'll also be out of job.

Still have not made a decision one way or the other, but you all gave me a lot to think about. Thanks!!

I disagree. It's not the same thing at all. The mortgage company and your employer are two separate entities. Totally unrelated so of course it doesn't absolve your financial obligations.

Listen, if they ask me to pay back the $ I will, but I feel the contract is too one-sided (which is nobody's fault but mine for signing it). Pay cuts, merit increases frozen, understaffed because of hiring freeze, etc. So much has taken place since I signed it. I worry that if I do stay, I may be laid off eventually--of course then I wouldn't have to worry about the $3000 but I'll also be out of job.

Still have not made a decision one way or the other, but you all gave me a lot to think about. Thanks!!

Yes, they are two separate entities, but the point is that a contract is a contract, no matter who you sign it with.

Getting laid off is always a possibility, but you have more senority where you are now than you will if you go some place new where you could still get laid off; unless, of course, you can get them to guarantee in writing that you will always have a job. I know you like the new job better, but if getting laid off is that much of a concern, I'm not sure how it will help you to leave the one you have for a brand new one.

These are virtually all things that a RESPONSIBLE person researches BEFORE signing a binding contract.

It is also quite unfair to the experienced nurses to repeatedly have to repeatedly orient and precept new nurses, just to have them bolt. It is unfair to the pts to always being a "learning experience" to a new grad, as they work through their initial IVs andfoleys. It is unfair to MDs to repeatedly have to explain things over and over and over to new staff when staff bolts this way and that. It is unfair to secretaries to repeatedly show new staff over and over how to do things.

These things are really unfair to insurance companies and those paying increased fees due to high costs of orienting new nurses repeatedly.

And it is pretty darn unfair to the many new grads that need and want a job, ANY job and that could have had that one and stayed in it, whereas another one took it and then bolted - they could have employed for several and made many more thousands of dollars greater then than the 3000 penalty, and become a major asset, rather than a money loss to the facility.

And it is really unfair to the new grads that the facility will be hesitant to hire, because they are tired of being burned.

Yes, reality shock of working in many hospitals is hard, but some of us paid the dues. And others do not and it hurts many down the line.

..and it is rather unfair for someone to assume that the individual did not do his/her own research of a hospital only to find out that it has been changed just when they resumed work. you fail to admit the fact that employers LIE even when the right and specific questions are asked. yes, they LIE. admit it. Did u also point out how unfair it is to dash a new grad to a different preceptor every week? or a preceptor with barely 6months of working experience? or an LPN with less than 8months-1yr experience precepting an RN? or coworkers making insulting and intimidating remarks when said new grad request for additional orientation weeks? ofcourse not. ofcourse patient safety is completely left behind here. how incredible. cos in your eyes, new grads are just irresponsible. BRAVO!

There is a section in the interview process for you to ask these questions yourself...take responsibility to know the job you will be accepting.

there is a section in my post that addressed that. you ar e reading what you wanna. there is only so much research one can find when they do not phsically resie reside in that area, or even state. when y ou are desperate for a job and you are offered one, sometimes you are unable to find people that will be willing to give you the real dirt on the hospital. you take what you are able to find say online and hope you asked the right questions and have them honestly answered as asked.

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