I work as an intern for a large private manufacturing company in Wisconsin. When I started working for this company they made me sign a contract stating that I would stay with them until I earned my degree, and once I had my degree I would move into their supervisor training program to become a supervisor. The contract also stated that if I was to quit working with them before I stated the supervisor training program that I would have to pay back the company roughly a third of my earned wages. Also I do not know if this matters at all but I signed this contract with the facility I work in here in Wisconsin but I get paid from the corporate office in California and I don't think they know or have anything to do with the contract. At the time I needed a job so I signed the contract and have been working for them but I am now starting to look for other employers to try and get more experience, so I am wondering is this legal for them to do?
As a general matter, such agreements are enforceable as long as your remaining compensation exceeds the minimum wage. It is not illegal for employers to pay long-term employees for their loyalty and to provide disincentives for employees to leave. You knew what you were signing when you signed it. If you have concerns about this arrangement, see an attorney.
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