Stop the Clawback: Washington Employers Can’t Take Back a Paid Sign-On Bonus

In Washington State, a sign-on bonus that’s paid because of the employment relationship is treated like wages. That matters because Washington’s wage-rebate protections are designed to ensure employees receive — and keep — the full amount of wages they’ve been paid. In plain terms: once an employer pays you a sign-on bonus, the employer generally cannot later collect or receive that money back from you as a “repayment,” “refund,” or other clawback device. Employers sometimes try anyway by using agreements that require repayment if you leave before a set date (and may even threaten collections or a lawsuit), but provisions that contradict Washington’s strong public policy protecting wages can be void and unenforceable.    

If you’re a current or former employee facing a demand to repay a sign-on bonus, you may have meaningful leverage, and you should get advice before you pay anything or sign anything. Seattle Litigation Group PLLC helps employees evaluate these clawback demands and respond strategically. If you’re searching for help using phrases like “contingency lawyers near me,” “civil lawyers who work on contingency,” “attorneys near me with free consultation,” “i need a lawyer to sue,” or “lawyer to sue a business,” we’re happy to discuss whether your claim may be a fit and what your options look like. (And if you’ve wondered about the “difference between attorney and lawyer,” the practical takeaway is the same here: you want a lawyer who knows Washington wage protections and can litigate when necessary.)