Intern Contract

[DrCbass]

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I have a question dealing with tuition reimbursement contracts...

I currently work for Kroger as an intern, and have enjoyed working for them up to this point in time. Just recently though, the DM for this area has been contacting each intern and somewhat mandating that we sign a tuition reimbursement contract. If we don't agree to sign, he's pretty much stating that we will be fired.

I was hired 2 years ago without any contract or obligation to sign a tuition reimbursement (which would obligate me to 1 year of service for every year of reimbursement I take). I just wasn't sure if this was standard practice for a company to force their interns to sign a post-grad employment contract. Do I have any sort of legal grounds if being threatened to be fired if I do not sign? I don't exactly want to pursue legal action or anything like that... I'm just curious as to what my rights are to refuse and still keep my job.

 

[rxlynn]

No - this is not standard practice. In fact, it's usually the opposite - you have to jump through all sorts of hoops to get the tuition reimbursement in the first place. In fact my employer (CVS) as far as I know doesn't have that type of program at all anymore.

I would consult a lawyer.

 

[Old Timer]

If you really like the job, and you are not sure you want to stay with them after you garduate, take the money and either lower your student loans or place it in the bank and earn interest and give it back if you don't want to sign on....

 

[DrCbass]

Aren't there usually terms within the contract if you breach the agreement? Such as being penalized heavily for the breach? I haven't looked at the contract yet, so I'm not 100% sure as to what it says.

 

[Old Timer]

Aren't there usually terms within the contract if you breach the agreement? Such as being penalized heavily for the breach? I haven't looked at the contract yet, so I'm not 100% sure as to what it says.

Not Usually, just make sure you show it to a you a lawyer before you sign the contract.

 

[Vitamin K]

Aren't there usually terms within the contract if you breach the agreement? Such as being penalized heavily for the breach? I haven't looked at the contract yet, so I'm not 100% sure as to what it says.

No, but they tax the money before you receive it...and if you cancel your contract, you owe the PRE-TAX amount. (i.e. you owe more than you received) They leave it to you to figure out the tax adjustments required to get back the extra portion that you paid. It's a nightmare.

 

[Old Timer]

No, but they tax the money before you receive it...and if you cancel your contract, you owe the PRE-TAX amount. (i.e. you owe more than you received) They leave it to you to figure out the tax adjustments required to get back the extra portion that you paid. It's a nightmare.

That's not the case. It's technically a loan. They forgive the loan if you sign on. If not you pay it back. It's not a sign on bonus....

 

[DrCbass]

I spoke to some of the other interns that I work with... it appears that the contract states that if the there's any breach of the contract... you have to pay a $10,000 penalty on top of what you have 'borrowed'...

That sounds a little steep... I don't think I want to risk having to potentially pay back close to $25,000

 

[Vitamin K]

That's not the case. It's technically a loan. They forgive the loan if you sign on. If not you pay it back. It's not a sign on bonus....

Oops! Sorry, I guess I misunderstood the question.

 

[illtreaturite1]

Always read the fine print before signing any contract. In this area, its pretty standard to have your company pay for schooling in return for x amount of years of service. If you leave, you will have to repay them for the amount they paid the school PLUS any fine print termination fees that are written into the agreement. I know Kroger's has been a 1 year per year of tuition paid (for a long time), but each place is different. The hospital I work for paid for all of pharmacy school for 2 years of service. My current job pays 75% of any school costs and I don't have to pay it back as long as I work 1 year past the date of the final payment (its actually a reimbursement to me, I pay the school first)

There are a wide varieties of options, and if you are considering a residency how does that play into the contract? Will they allow you a 1 year "sabbatical" to do a PGY1? If you do a PGY1 with that company, at what point does your "years of service" required start?

 

[genesis09]

Walgreens does allow for a one year sabbatical for a residency.