Am I required to pay back my employer?

My employer relocated to Tennessee from California last year. As part of that move they offered us a relocation allowance, which provided us monies to make the move and obtain temporary housing. In my personal situation, that amounted to less than $20K. In return the firm had us sign a contract that stipulated that we would be required to stay with the firm through mid September. Otherwise they would expect 100% payback.

I have elected to resign 4 weeks prior to that contact date. Hence, I would owe my employer those relocation monies. Question is, are they legally entitled to the full 100% back? My opinion is that it should be pro-rated. Additionally, since they have added on unrelated tasks to my current position without compensation or my consent, could I not countersue?

You can argue that they changed your job so much that the agreement is not valid now; it only applied if they kept things as they were or at least kept them so that you could indeed continue. And now you cannot continue due to their actions so you need not pay.

Thanks for the response. The follow-up is that my employer is now threatening to withhold my final paycheck and any earned vacation and apply it towards the sum owed. I don't think they have a legal basis to do this, but they sat me own and issued me a pretty direct letter. They're demanding all 100% back plus tax.

I've ask that we negotiate the matter. They stated they'd look at it, but somehow I'm not optimistic.

Take them to small claims court if you have to!