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Sands Appliance Servs., Inc. v. Wilson

"Tuition contract" which employee was required to sign as condition of employment and which required employee to provide monetary payments to employer in event he did not work six years was void and unenforceable under Michigan statutes baring employment contracts that require remuneration or consideration from employee.

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The full case caption appears at the end of this opinion.

The issue in this case is whether the “TUITION CONTRACT” that plaintiff-employer, Sands Appliance Services, Inc., required defendant, Christopher Wilson, to sign before he began employment was void and unenforceable. Defendant asserts that plaintiff violated subsection 8(1) of the wage and fringe benefits act (WFBA) [FOOTNOTE 1] and the accompanying administrative rule, 1982 AACS, R 408.9011. The district and circuit courts found for the defendant. The Court of Appeals reversed in a split decision. 231 Mich App 405, 421; 587 NW2d 814 (1998). We hold that the contract did violate the statute and administrative rule and, accordingly, reverse the Court of Appeals and reinstate the judgments of the district and circuit courts.

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