Can I work for another employer if I have an outstanding loan with my current employer?
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Can I work for another employer if I have an outstanding loan with my current employer?
I am an owner operator truck driver. I purchased my truck from my current employer. I have paid for the truck in full, but have an outstanding personal loan. I would like to take my truck to work for another company. Besides holding the title, does my current employer have a right to keep me from resigning, taking my truck, and going to work for another company?
Asked on January 13, 2012 under Employment Labor Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
As a general matter, owing an employer money, including money on a loan used to purchase a vehicle from them, does not give the employer the right to prevent you from resigning, taking the vehicle, and working for somone else. That said, if the terms of the loan require you to keep working for them until it's paid, or would have the full remaining balance come due if you leave, etc., that would be enforceable. You should discuss the matter in detail with an attorney, including bringing with you all documentation and correspondence about the loan and the transaction for his/her review, to be certain of your obligations before you resign.
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