A major personal financial planning firm pays a new employee's salary for the first six months on the job, even though the employee spends this time getting trained, licensed, and making contacts that will generate client commissions later on. The firm estimates that its "unrecovered costs" during the first six months or employment equals $40,000. This sum reflects the new employee's salary, the office overhead costs used by the employee, and out-of-pocket training and licensing fees paid for by the company.
The company has a policy that, if an employee voluntarily leaves within the first two years of employment to join a competitor, the employee must repay this $40,000 company investment. The employee signs a Note Payable and "Acknowledge of Indebtedness" form upon joining the company that clearly states this policy.
Is this policy legal or ethical?