what s an example of a clawback penalty 
again it can depend on the nature of the provision and the source of the money in question but a penalty is typically an amount that s added to the money being reclaimed an employee might receive a 5 000 bonus for reaching a sales goal but the bonus came with a clawback provision it s later discovered that the employee tinkered with sales records and didn t reach that goal the clawback might include a 5 000 repayment plus a 10 penalty for a total of 5 500 5the bottom lineclawbacks often result from issues of misconduct or poor performance by an employee but they can also occur when a company is experiencing financial woes due to no fault on the part of the employee involved a clawback can typically be enforced if it s agreed upon in a written signed contract you ll want to seek legal help in any case if you re hit with one so you re sure you understand all your rights options and obligations this is particularly the case when the government is involved such as with medicaid or if your retirement provisions are threatened 