Originally Posted by
JLTD
The bonus: it's real, paid by Big Daddy, but there are strings attached they won't tell you about until they put the paper in front of you to sign. You'll be on the hook for the entire pre-tax amount, even though Uncle Sam will take about 32%. (It's a 2-year deal and if you stay 1 year you only owe 1/2 back). Most of the pilots in my class put theirs in a money market account in preparation for leaving, many left within the first year and paid it back...said their accountant would file an amendment to recoup the taxes paid. I had an attorney check the contract, and it's pretty solid, and they told me that C5 has filed at least 9 lawsuits in the last 18 months to sue pilots who were balking at paying it back. Also, the credit for your 121 time? Yeah they give it BUT it is frozen until you stay there long enough (ex: you get 5 years credit. You won't get a raise until year 6, and it's to year 6 pay). The bonus only gives credit for pay, not for any other benefits. PSA is a better choice for that, they give credit for 121 time for both pay and all benefits.
Why would the pilot not be on the hook for the cost of the "bonus?" Why should the pilot not be responsible for the taxes? The company had to lay out the full amount. Whether it went in your pocket or you had to render unto Caesar, or you lost it in gambling debt is irrelevant to the company. The deal is that you get X amount, you pay back X amount. Gross, not net. The company shouldn't be responsible for your taxes simply becasue you decide to not live up to the commitment that you made.
As you noted, pilots put their money in accounts because they planned to violate the agreement. They knew what they were doing.
It's always good to check with an attorney to see about the legality of any agreement into which you enter, but your comment comes across as having checked to see if it was something ou could get out of . Likewise, there should be no surprise at pilots being sued because they failed to keep their word.
Honor: it's implied by the signature.