Tuition Reimbursement

[Guest Rettop]

Does your company ask employees to sign promissory notes which require employment for x number of years as a condition of paying tuition?

[Jbentz]

All tuition reimbursement policies that i have had nominal compensation ($1000.00 per calendar year) and have not required that. The only policies that i have dealt that do require a stay of employment was based on the company paying the complete tuition. this is done with CMA's RN's, etc... those were always special educational programs aside from the normal tuition reimbursement benefit. It was also only for the most sought after positions as a way to recruit.

Hope this helps.

[JanetM]

My company does require you to sign a note for all tuition reimbursement. The Note states that if you do not work for an additional 12 months after receipt of reimbursement, the amount must be repaid. Each reimbursement requires a new note to be signed for that amount. So if you take 4 classed a year, you have 4 notes.

[mbozek]

If employee is required to sign a note does this become a loan subject to state consumer protection laws?

[JanetM]

You got me on that one - Just reread the policy and it does not say. Just that you promise to repay if you leave the company within one year or are terminated for cause.

What would that do- the state law part I mean.

I ask because I start classes for MBA in 3 weeks.

[mbozek]

state law may require disclosure of terms of the loan and the consequences of default in more explicit language, e.g., any collateral expenses such as cost of collection, atty fees, etc. Also state labor law may regulate loaning of money by employer to employee. Each state has different laws.

[JanetM]

I am in Ohio. The policy is written and named the "voluntary educational assistance plan."

States " Employees participating in Educational Assistance Program are required to sign a promissory note in order to receive reimbursement from the company."

Nothing is stated in the policy regarding interest or anything else. The promissory note is not even signed until you get the reimbursement.

[mbozek]

I dont know anything about Ohio law. Sorry.