Airline Pilot Central Forums - Air Wisconsin Bonus Repayment

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- - Air Wisconsin Bonus Repayment - legitimate? (https://www.airlinepilotforums.com/air-wisconsin/126025-air-wisconsin-bonus-repayment-legitimate.html)

Air Wisconsin Bonus Repayment - legitimate?

Air Wisconsin demands bonus repayments from pilots who do not stay on the job for two years. When I left before the two years were up, they billed me for the repayment. I asked the company to tell me why they thought I owed the repayment, but I never received a reply to my numerous letters or phone calls - they just kept billing me for it. I spoke to an attorney who told me the company's demand is baseless, and that I do not owe the repayment. Has anyone repaid their bonus(es) and, if so, why did you think you owed the repayment?

The bonus earning schedule is clearly stated during week 1 or 2 of INDOC along with the deferral option.

If you don’t plan to stay two years or pay back bonus money you should defer the money until it is earned.

Think of the bonus money as a pay advance that is earned/vested primarily between month 13 and 24.

To answer your final question, it’s because it’s in the contract you signed when hired. You aren’t entitled to anything here and you are stealing from the company.

Aside from that, this whole post reads as if it’s coming from a lifer who wants new hires to screw the company.

Quote:

Originally Posted by blatav (Post 2940043)

I think you sign something electronically when you agree to bonus or the deferred bonus plan week one. I know I did when I got hired. I took a screenshot of it at the time. I deleted it when we got the new iPads (I was fully vested so it didn’t matter at that point) so I no longer have what it says though it did talk about repayment expectations. 100% before 1 year, prorated months 13-24. Something to that effect. Each individual bonus may have vested earlier - like the 5k after IOE. That’s why the defeated bonus pays in months 13-24. You get 1/12th each month since it’s already vested.

Now that said - is that (electronic signature) legally binding? Would a signed contract even be? No clue. But my guess is that is the leg the company is standing on with this. “We told you, in advance of accepting the bonus, and you signed electronically, that you were aware of policy and then we paid you bonus. So we want our money back”.

Again, I’m not saying I agree or not. And it maybe worth a legal challenge. But at the time I was hired and accepted the bonus, I was aware of the policy and acknowledged it, so it’s hard for me to claim ignorance. The bonus amount has morphed a few times so I also can’t say if each version over the years has done things differently but mine was one of the first versions so if they were documenting it back then - I’d guess they still are.

The reason why a good attorney will tell you that the claim is baseless is indentured servitude was made illegal in this country about 150 years age. However they can continue to harass you and treat this as a bad debt and put it on your credit report. But if it ever sees a court they will lose, quickly, and they know that.

Quote:

Originally Posted by tallow (Post 2945219)

Indentured servitude? Maybe. But contracts (depending on law in the states they are made in) definitely can be enforceable.

Quote:

A signing bonuses or sign-on bonus is incentive pay offered by an employer to encourage a new employee to join the employer's workforce. A signing bonus is offered to incentivize a skilled employee to work for a company or to encourage the employee to stay with the company for an extended period of time. In the latter example, an employer will usually make a bonus offer based on the employee agreeing to remain with the employer for a set period of time.

A sign-on bonus occasionally comes with conditions attached. If the employee signs a repayment agreement stating that they agree to return all bonus monies if separated from employment before a certain date, that employee would likely have to return the money if they decide to leave before that date. The Court may consider the sign-on bonus and agreement a valid contract, and may enforce it against an employee who leaves early and does not return the money, considering the employee's action to be a breach of the agreement. So, if an employee agrees to the terms when he took the job and the signing bonus, signed a repayment agreement, and then decided to take an action in violation of the contract, he would be expected to repay the incentive monies received. However, without a repayment agreement, the employee will not be expected to repay the signing bonus, regardless of when he separates from employment

Put yourself in the shoes of your future dream employer. You have a candidate who left a company and walked away from a signed agreement, then threatened legal action to avoid paying it back. Would you hire said person?

Is it likely that they’d know you that you did that? Probably not, but I guarantee it would destroy your chances if it did, so why not just pay back what you owe?

Quote:

Originally Posted by DarkSideMoon (Post 2945230)

Exactly this. You had/have three options:

1. Take full bonus upfront/pay it back if you leave early (prorated possibly).
2. Defer bonus till it fully vests/don’t pay it back if you leave early.
3. Don’t take a dime/leave when you want.

It’s not mandatory to do option 1, so claiming indentured servitude would be countered by the fact you simply could have picked options 2 or 3 but didn’t. Taking bonus and taking the job are not one in the same. You can say no to bonus. Or defer it. Or take it all. It’s your choice but there are repercussions to each.

I guess I’m old school? Repay what you agreed to or remain at the company for two full years until your obligation is complete. This reminds me of government debt forgiveness that people everywhere are whining about that they got denied. Pay what you owe/fulfill your obligation. It’s a moral duty. You’ll have accomplished something you said that you would and feel good about it and will have nothing to worry about.

Assuming the company found the electronically signed contract, they would then need to file in court to come after the money. At minimum, that would be 10-20K for lawyers to be retained, have you served papers, file, etc. I don't think they will go through the legal system to recover. Someone mentioned you suing them, but that would make no sense with lawyer fees, chance of losing, paying their fees, etc. The only person that wins with a lawsuit are the attorneys.

If you don't pay them back, expect to get letters, marks on credit report, etc.. As others have said, having an unpaid debt to Air Wisconsin when a future employer pulls your credit report might just eliminate you from consideration with no chance to explain.