I was offered a job and accepted, however the day i presented my employer with the notice the offered me a job.

If I understand correctly, you have a job… you went seeking a new job in an area that requires a plane ride.  You took that plane ride (paid by the interviewer), were offered the job, and accepted.  When you gave your two-week (or however long you gave) notice, the current employer offered you a better gig that you want to accept.  Now, interviewing/job offered company says ‘fine, but we want the money for the plane ticket back’ (essentially).  Or, they offered you the job, and then bought you plane tickets.  Well, absent some agreement that the plane ticket was to be paid back, I think it may be tough for them to come after you.  If the tickets were bought to bring you in for the interview, it looks like this was just incentive to get you as a candidate.  However, if the tickets were bought as a relocation package, that gets trickier because I’d be interested in the agreements or understandings regarding the relocation package.  This could have been contingent on you taking the job with the understanding that you would be on the hook if you decided not to take it.  Basically, there are many more questions that need answers before anything definitive can be determined.  In either case, I’d be a little surprised if they would pursue a small claims case against you for $500.00.  To get something definitive, I’d suggest sitting down with a lawyer to discuss everything in a confidential environment.