Many employers provide expensive training to new employees only to see the newly trained employees disappear after a short tenure. In order to recoup the costs associated with upfront training, some employers require repayment of training costs on a graduated scale based on the tenure of employment. In Gordon v. City of Oakland, the Ninth Circuit Court of Appeals determined that such a written agreement did not violate the Fair Labor Standards Act as an unlawful kick-back.
Ninth Circuit Holds that Repayment for Training is Not an Illegal 'Kick-Back'
Ninth Circuit Holds that Repayment for Training is Not an Illegal 'Kick-Back'
Tuesday, January 18, 2011