SAN JOSE, California -- John Schuett got laid off from a Silicon Valley telecom firm and was asked to repay $1,250 of a signing bonus because he didn't stay at the firm a full year.
Schuett got a $2,500 signing bonus when he joined San Jose-based Valiant Networks. He lost his job in October after six months.
Soon after, the company sent a letter threatening to send a collection agency after him if he didn't return half the bonus.
"I'm furious," said Schuett.
Valiant CFO John Zavoli said the troubled firm is just sticking to agreements employees signed. The firm has cut about 90 jobs, or 75 percent of its work force, in a series of layoffs.
Schuett's employment letter stipulated that he repay the money if his employment was "severed," and the firm is obliged to collect on debts.
Most employees have agreed to pay the bonuses back, Zavoli added.
Rob Coelho, an employment attorney in San Jose, said Valiant's move was harsh despite the contract.
"I think it's unrealistic to expect an employee who was just terminated to repay a signing bonus when we're heading into the holiday season in this economy," said Coelho.
