The majority of companies do not offer educational benefits to employees. There are no hard and fast rules but the most common approach is to reimburse employees for educational expenses after the class is passed with a certain grade. This limits the employerâ€™s risk. Also it is fairly common to require the classes to be related to the employeeâ€™s job duties.
If an employer loans money to employees for education (or any other purpose) there are significant risks. Not the least of which is the possibility that the employee will quit immediately after receiving the money. If an employer insists on loaning money to workers, the loan should be documented like any loan for any person or any purpose. Repayment should be fully describedâ€¦etc. It may be illegal to withhold wages to make loan payments in some cases. The correct documentation allows the employer to go to court to get the money back.
Hope that helps you out. =)
A note about HR laws:
Laws concerning employee treatment, benefits, hiring and firingâ€¦etc are multi-level. What this means is that there are Federal laws, state laws and sometimes local regulations that have jurisdiction over an employee. The information presented here should not be considered legal advice. Ultimately, employers with serious legal questions should consult local attorneys with expertise in worker relations.
The questions and answers presented here are based on research and data from internet sources and should not be considered the final word.