Employment Contract

[Astro]

Anyone ever have to sign a contract that says they'll have to reimburse the company for training costs if they leave before the contract is up? I've come across this twice now.

[Whiteshadow]

Yes, very common in the industry

[WolftalonID]

Yes, as many training expenses are in the thousands or more dollars, and the training can very well be transferable. Companies don't like spending their money to train another companies pilot.

[iChris]

Anyone ever have to sign a contract that says they'll have to reimburse the company for training costs if they leave before the contract is up? I've come across this twice now.

 

If the employer is on the ball, these contracts can be enforceable; however, most of the smaller companies have contracts that are outside legal provisions and are not enforceable. The only way for you to know is have a lawyer evaluate the contract prior to you signing.

 

Employers complain that they invest in training of an employee only to lose that employee to a competitor once most of that training has been completed, but before the training employer has recovered the costs of the training.

 

Employers can sometimes permissibly seek reimbursement of advanced costs for licenses or certifications required by law; however, can generally not seek reimbursement for training that the employer imposes as a requirement of employment. The employer may seek reimbursement of a tuition or training cost benefit on terms agreed to in advance. The term also needs to be reasonable, $15,000 training cost for a 5 year or more commitment have been ruled unenforceable.

 

Employers often seek to restrict or limit an employee’s ability to seek employment elsewhere (for a period sufficient for the employer to reap the benefit of the training they provided) and/or to require an employee to reimburse the employer for the cost of training if they leave employment prior to the expiration of that period. Improperly drafted agreements of this kind can constitute contracts for a specified term (the polar opposite of at will employment) and may violate some Labor Code violations.

 

It is common to expect to read and sign numerous documents when you start your job. These documents often include company policies, applications, employee handbooks, at-will employment agreements, and job evaluations.

 

Employers are almost always certain to include that their employees are at-will employees. Look through these documents at your job and see if any of them mention that you are an at-will employee. Even if the documents do not use the term "at-will," any language implying that your employment can be terminated at any time means the same thing as "at-will". Chances are it is written somewhere.

 

Even if you're employer has not written it in any of the documents, you are probably an at-will employee, unless the documents state otherwise. If you signed any of these documents that state that you are an at-will employee, then you have agreed you understand you can be terminated at any time.

 

How Best Can An Employer Protect Itself for Expensive Specialized Training When The Employee Leaves Employment After Being Trained?

 

How to Get out of an Employment Contract

 

What States Are At-Will? List of At-Will Employment States

 

 

Cannot Perform

 

It is possible to get out of a contract without being sued if you can no longer perform your obligations due to a particular circumstance or event. “Impossibility of performance” is grounds for contract termination because circumstances beyond the control of the contractual party prevent performance. Death or incapacity of a key player involved in the contract can cause such an impossibility. Natural disasters or destruction of something necessary to perform the obligations can also lead to impossibility. If you can prove that you cannot remain in the contract due to circumstances beyond your control, it is possible to end the contract without a breach.

Edited April 14, 2016 by iChris

[Spike]

At the last HeliExpo, I heard the following story; a pilot applies to all of the GOM operators and subsequently interviews at 2 of them. He wants to work for operator brand Y but gets an offer operator brand X. Upon finishing his training at X, brand Y calls and offers him a job. Wanting to work for brand Y in the first place, he accepts and resigns from brand X. Before he starts his training at brand Y, the CP at brand X calls the CP at brand Y and explains the situation and the situation was, brand Y put time and money into this pilot and he bailed. Brand Y rescinded the job offer and brand X did not hire him back.

 

This is a small industry where everyone knows everyone and your reputation is everything. Screw over an employer and it may come back to bite you 10 fold…. In short, if you agree to a commitment, I’d suggest you keep it…….

[Azhigher]

Yup, been with a few operators that wanted to get reimbursed if you didn't stay for the year after you said you would. Can't blame them, if you want the job do your year.

[helonorth]

At the last HeliExpo, I heard the following story; a pilot applies to all of the GOM operators and subsequently interviews at 2 of them. He wants to work for operator brand Y but gets an offer operator brand X. Upon finishing his training at X, brand Y calls and offers him a job. Wanting to work for brand Y in the first place, he accepts and resigns from brand X. Before he starts his training at brand Y, the CP at brand X calls the CP at brand Y and explains the situation and the situation was, brand Y put time and money into this pilot and he bailed. Brand Y rescinded the job offer and brand X did not hire him back.

 

This is a small industry where everyone knows everyone and your reputation is everything. Screw over an employer and it may come back to bite you 10 fold…. In short, if you agree to a commitment, I’d suggest you keep it…….

 

It's a story and nothing else, in my opinion. But I have an idea who these operators are supposed to be. I don't think any of the reputable GOM companies would hold it against you that you bailed on brand X at any point. Their reputation of how they treat employees is dismal. They also have a reputation of trying to sabotage their employees that go elsewhere, too. I doubt any of the other companies even take calls from "brand X". I can pretty much guess where this fable came from.

Edited April 15, 2016 by helonorth

[Flying Pig]

I know a county govt agency who did just that. Agency trained up a brand new pilot with a good mix of private pay by the employee and in-house with the operation. Leaning heavily on the in-house. About all the new pilot was paying for was solo stuff and renting an R22 for check rides. Everything else was being done in a B206 and was being done on the job. The new pilot was being groomed to replace a pilot retiring in about 2 years. This new pilot was fairly young. Mid-20s. Then..... brand new pilot applied for a pilot spot with a neighboring county agency. I guess he didn't want to wait and fly on the county dime...he wanted that "pilot" title right now and wanted to be his own man. This guy was literally being PAID to go to work and learn how to spray Ag after being hand selected from being a ground/chemical pesticide loader.

 

It was actually the hiring agency with the opening who called back to the agency who had trained up the pilot. Pilot got called in and asked to explain himself. Not much to say. "Im a selfish Millennial who doesn't owe you anything." (I don't know that he said it... but it makes for a good addition) Last I heard the guy still works at this particular agency but is no longer flying and the agency decided to hire out externally for that retiree spot that came open about 18 months sooner than expected.

 

Some peoples kids......

[Little Bird]

Heard that same story just happened in the ditch...

[Astro]

Not looking to jump ship, just can't afford to reimburse training costs if the job doesn't work out.

[Spike]

 

It's a story and nothing else, in my opinion. But I have an idea who these operators are supposed to be. I don't think any of the reputable GOM companies would hold it against you that you bailed on brand X at any point. Their reputation of how they treat employees is dismal. They also have a reputation of trying to sabotage their employees that go elsewhere, too. I doubt any of the other companies even take calls from "brand X". I can pretty much guess where this fable came from.

The story was told by a former VP of training of one of the majors during a panel discussion presentation. If this story appears doubtful, then what else is considered unreliable? The answer..... Everything.....

[helonorth]

There is only one question a CP would ask when you left brand X for their company (whether it was one day or one month): "what took you so long?" Never heard of the position of "VP of training", either.

[iChris]

Not looking to jump ship, just can't afford to reimburse training costs if the job doesn't work out.

 

Let’s talk real world. This is a small industry; however, don’t be fooled, it has its share of disreputable company owners and upper management. Its portion of deadbeat Directors of Operations and blundering Chief Pilots. Accompanied by an allotment of lying and backstabbing Line Pilots as your coworkers.

 

They’ll make promises they can’t keep, try to short you on your pay, overtime and per diem. No respect for your time-off with unscheduled call-in. They’ll always want you to go that extra mile; however, they won’t go two damn feet for you. For a contract to be valid it must be of mutual benefit to both parties.

 

If you do sign such a contract, make sure that you document in detail (I do emphasize detail) all the training you receive. The old fly along on jobs and ferry flights that are already billed-out, flights where the ship is under contract and the flight times already paid for, is not flight training that you have to reimburse them for, so don’t go for that old trick.

 

These public sector jobs, City, County, and State usually have enough checks and balances so it’s not as bad. However, in private industry, there are wolves out there running free and they will devour you, if you let them. Talk to some of the veteran pilots in your area about the tricks some companies play. These companies are good at fleecing sheep.

 

There are those that will say, “no one put a gun to your head to make you sign,” well there is a terminating clause for that; Covenant of Good Faith and Fair Dealing and Undue Influence that are grounds for terminating the contract when an employee is negotiating with an employer were the employer has a far superior bargaining position than the employee. This is normally the case under these one-sided agreements.

 

If they try to stick you with something that you know isn’t right don’t go for it, call them out, they can take their training and shove-it. Some of these contracts are so one-sided it’s ridiculous.

 

How to Get out of an Employment Contract

Edited April 16, 2016 by iChris