You leave, you pay – Employer tries to recoup training costs from departing staff

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Abstract: Training is an essential part of any job. But is it a violation of the Fair Labor Standards Act (FLSA) to require employees to pay back training costs if they resign their positions within a certain time frame? The U.S. Court of Appeals for the Ninth Circuit said “no” in regard to a former police officer who filed a lawsuit on behalf of herself and others similarly situated. But a sidebar discusses another case in which certain employer deductions were judged to be a kickback. Gordon v. City of Oakland, No. 09-16167, Nov. 19, 2010 (9th Cir.) Cao v. Wu Liang Ye Lexington Restaurant Inc., 1:2008cv03725, April 18, 2008 (N.Y. Southern District)