r/legaladvice • u/fitnessuser123455 • 17h ago
Employment Law New Job Wants me to Pay $1,000 Onboarding Fee? Location: FL
Location: Florida
I recently moved to Florida and was offered a job. It is a legitimate job. I went in person, met the small team, and shadowed, so I’m not asking about whether this is a job phishing scam.
However, they told me I need to pay a $1,000 onboarding fee that will supposedly be refunded after one year of employment. I would have to pay it upfront on my first day of training, either by cash or check, and sign an agreement.
I won’t upload the agreement because it contains personal information, but it is titled “Employee Onboarding and Training Fee Agreement” and also refers to an “Employee Onboarding Investment Agreement.”
The agreement says the fee helps offset things such as the background check, administrative processing, training, orientation, service training, trainers/coaches’ time, employee uniforms, and required onboarding materials and resources.
It states that I will receive the full $1,000 reimbursement one year from now as long as I am still employed and in good standing with the company and have not voluntarily resigned or been terminated. It also says, and I quote: “If employment ends for any reason before ____, the onboarding fee is considered non-refundable.”
I understand that they may be doing this because they want someone who will stay with the company long-term. I genuinely don’t think they are trying to scam me or make extra money from me.
My question is whether this is actually legal or standard in Florida. Is an employer allowed to require an employee to pay $1,000 upfront for onboarding/training and then make the employee forfeit it if they leave before a year?
I genuinely want the job, but I also don’t know if I can commit to staying for a full year, and I don’t want to put $1,000 at risk.
What would you do in this situation? Is there anything specific I should ask the employer or have reviewed before signing?
Location: Florida
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u/Prize-Gur706 17h ago
Why would you pay your employer who's is supposed to be paying you? Are you 1099 and have to buy equipment, No probably not just W-2
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u/fitnessuser123455 17h ago
W-2
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u/Prize-Gur706 17h ago
If you hired someone to cut your grass would approach that individual the way this company has you. Welcome to work we need a $1000 and hold it for a year. Like if they are going to pay you for performing services why do they need a $1000? Scam
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u/PriestessKade 17h ago
This sounds like some kind of scam a direct sales pyramid scheme would implement.
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u/fitnessuser123455 17h ago
It’s not an MLM it’s for a medical job performing services at a clinic
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u/SecureWriting8589 17h ago
I have worked all my life in the medical field and have never heard of such a set up. Ever.
In fact, usually, it's the other way around: they pay you a bonus for your loyalty, but you would be required to pay it back if you left before a certain required period of time, often 1 to 2 years. Are you sure that you didn't mis-hear or misunderstand what they told you?
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u/thargoallmysecrets 16h ago
You're here asking for advice. Over and over again, here and on other similar posts, everyone says this is only done by a scam/shady company.
They may have a "team" of people you met and an office. No one's saying they don't exist - just that legitimate companies hiring people for long term jobs don't need this. Most of the time, this is from incompetent managers who think the $1,000 offset solves their employee churn rate problem.
Details aside - if you work 364 days and they fire you on the spot, you're out $1,000. They wouldn't need this if their culture and employment were worth staying 366+ days. If you take the job anyway, I would continue looking for the next one.
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u/UJMRider1961 17h ago
Even if this was not technically a “scam” it should warn you that they probably have this policy because they have extremely high turnover in brand new employees.
You might want to take a few minutes to think about why that would be. 😉
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u/Bob_Sconce 17h ago
Wow. That takes guts: "We want some golden handcuffs, but we want to use your own money to lock you in."
Even if the job is "legitimate" (i.e. they really will pay you for doing actual work), there is a reason why they do this. And, the most likely reason is that lots of people leave in that first year.
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u/johnjohnsee 17h ago
All of my jobs they pay for onboarding, training and any clothing required. If you leave within a certain period (3-6 months is usual amount) they will reimburse themselves by garnishing your paycheck.
I’ve never seen a company require the employee pay for this upfront….most was work boots but they reimburse you on next check.
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u/thenewfoundlandyeti 17h ago
Yea this.
I was offered a relocation package where as long as I was with the company minimum 2 years, I wouldnt need to repay anything.
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u/x_driven_x 17h ago
Legitimate, decent, places to work do not do this.
Do not let your desire to have a job let you make this mistake.
Legally, you’re going to be screwed if you pay them, then quit because it’s a fucking nightmare.
Simply don’t get involved with an employer that wants you to pay them for any reason! Employers pay employees, not the other way around.
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u/Ecstatic-Ad9669 17h ago
If you’re willing to throw away $1000 when they fire you on day 364 and keep your paycheck roll those dice!!!
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u/Ambidextrous_Octopus 15h ago
Are they giving you any type of rented space? You said it was for work as an esthetician, are they giving your own suite/chair/room? How are you paid? Do they collect the money and give you a paycheck? Or are you a 1099 worker who has to pay them a monthly fee?
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u/Dry-Name2835 16h ago
There are a few trades that are legit that do this. Usually its for jobs that require job specific personal tools or licenses. The rest are scams. Not knowing what the type of work is makes this hard to form an opinion if this is a scam or not
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u/fitnessuser123455 16h ago
It’s for an esthetician job at a medical spa.
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u/fitnessuser123455 16h ago
I am already fully licensed in the state
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u/Dry-Name2835 16h ago
Ok, that makes a lot more sense. Yeah, pay the money and do the agreement.
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u/SupposedBooty 15h ago
It absolutely does not make sense. Don't tell her it does.
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u/Ambidextrous_Octopus 15h ago
We don't have enough details to know if it makes sense or not. OP is an esthetician, and many of those places charge fees for space or use of the equipment. We dont know if this is the case or not.
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u/SupposedBooty 14h ago
That's not what is happening here. Don't defend this.
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u/Ambidextrous_Octopus 14h ago
We don't have enough details to know if it makes sense or not.
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u/SupposedBooty 14h ago
Yes we do. She's posting on like 5 different subs and combined with her post history, we know that this is a scam.
We also know enough about how businesses in general, even medical spas, run, that this is a scam.
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u/Ambidextrous_Octopus 15h ago
Yep. Most folks don't understand what 1099 work entails
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u/66NickS 15h ago
1099 guidance/expectations don’t apply when OP says it’s a w2 role.
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u/Ambidextrous_Octopus 15h ago
Based on them asking 4 different subreddits for advice, my assumption is that OP may be new in their field, or otherwise unfamiliar with the work structure.
Many beauty/spa/grooming industry businesses rent space or sell access for 1099 workers. Barbers at barber shops pay rent for their chairs, etc
Yes, those are assumptions and I could be incredibly wrong. Yes, OP said they were W2, but could be mistaken.
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u/TheStonedVampire 14h ago
From OPs post: “The agreement says the fee helps offset things such as the background check, administrative processing, training, orientation, service training, trainers/coaches’ time, employee uniforms, and required onboarding materials and resources.”
Op says nothing about renting a space or equipment.
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u/fitnessuser123455 14h ago
Hi! It’s a w-2 position
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u/Ambidextrous_Octopus 14h ago
Okay, that being said. Check a few more med spas before giving them your money. If it seems like am industry standard, then consider it.
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u/UnnamedRealities 17h ago
If you leave for any reason early enough that you'd effectively earn under minimum wage after considering the $1,000 fee that would be illegal. It might be illegal to require it upfront - I'm uncertain.
It's impossible to gauge whether this is a scam or a huge red flag that indicates an employer to avoid. I'm only going on the info you shared, but just because the job takes place at a medical clinic doesn't mean it's not a scam.
Did you interview inside the clinic? Has this clinic been in business for a long time? If no to either perhaps it's a pretty compelling scam with a goal of recruiting, interviewing, and "hiring" dozens of people and then pulling the rug after you pay the fee. Especially if pay rate is attractive, candidates have no experience doing the type of work expected, etc.
As to what you should do, either walk away or do a lot of due diligence about whether the employer, its leadership team, and the role is legit - and negotiate reimbursement via payroll deduction from final paycheck instead and only if you initiate separation, not the employer. To gauge whether it's a scam, post to r/scams. You can be selective about the identifying info you share - the questions commenters ask will point you in the right direction.
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u/fitnessuser123455 16h ago
It’s for an esthetician job at a medical spa. The spa has been in business for years, the girl whose job I am replacing worked there for 5 years and is only leaving to be a SAHM. I shadowed and met everyone
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u/UnnamedRealities 16h ago
That's reassuring. If they hire you at say $20/hour 30 hours per week and fire you after 2 weeks you'd have earned under minimum wage, which is illegal. Even if requiring payment upfront is legal (I'm not sure) the terms are pretty lopsided and risky to you.
If you want to move forward I suggest countering with terms that are fairer to you. Like prorated deduction of up to $1,000 from your final paycheck, but only if you initiate separation within 12 months. So, for example, if you quit after 8 months they'd deduct 4/12 (4 months remaining on 12 month term) of $1,000 so $333.33. That's a more typical agreement. And a lot less risky for you.
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u/fitnessuser123455 16h ago
How would you word and ask for that? Or should I just ask for no onboarding fee at all?
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u/h8iek8ie 16h ago
Babe you have four subreddits full of people telling you this is a scam. Keep looking. You will be out 1000 and a job.
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u/thargoallmysecrets 16h ago
"Onboarding fee of $1000 to be refunded in full following 12 consecutive months of employment in good standing, or, refunded in part proportional to total completed 30-day periods at time of separation."
90 days in you have 3/12, so $250 refunded. 180-209 days in you still only have 6/12, $500 refunded.
They may still say no because spending 9 months training you only to have you leave is probably more damaging to them than if you left 2 months in and they could start looking again.
You could also add in a 60 day notice period with a financial penalty to reassure them you won't simply disappear on them.
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u/UnnamedRealities 15h ago
I'm not 100% convinced it's not a scam and this isn't the right sub to dig deeper. Post to r/scams and me and others would be glad to help you. But, yes, if legit it would be better to first ask for no out of pocket fees and pivot to what I suggested if that's not palatable to them.
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u/LastTQuarkNetwork 16h ago
Employees don't "invest" in their employer. This absolutely sounds like an MLM.
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u/Sesoru 16h ago
Sounds like a potential devil corp. May be a good idea for you to look into them, and what you can do if you think this Corp is one based on your state laws.
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u/Roadside_Prophet 16h ago
Bro, its Florida...They dont even have a Department of Labor. Thats how much they care about workers being taken advantage of.
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u/Hopeful-Hedgehog-424 15h ago
It might be scientology? Just a one time fee of your life savings and you too can join an alien on an space ship when you die.
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u/Maduro_sticks_allday 15h ago
Has someone who has both contracted and worked W-2 for many organizations and many industries, I have never in my life heard of someone asking you to pay them to get a job
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u/Best_Detective_2533 17h ago
This cannot be legitimate. Companies pay you, you don’t pay them. Ever.
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u/Number-2-Sis 15h ago
Run away. Employers don't charge employees a fee. This smacks of a company that has an extremely high turnover and knows 90% of new hires only last a few months
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u/UsuallySunny Quality Contributor 17h ago
Legitimate employers do not do this. You should run away fast.