H1 B - Liquidated damages


virulent41

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Hi,

 

I am a physician employed by a private company in Florida, on H1 B visa. My employment contract states that if I terminate the employment without cause before the 3 year term, I would have to pay 30,000 dollars as liquidation damages. I have been working for one year with the company and I plan to change my jobs soon.

 

My query is if the amount 30,000 dollars is a reasonable amount to be payed as liquidation damages or not. In that case how can one calculate the appropriate amount. Is there a Florida state law that determines this amount. How can I find out if this amount is enforceable in my case or not and what should I do to try and negotiate to the right amount.

 

I will appreciate your time and input regarding this. Thank you

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That looks bogus.

For one, liquidated damages are expenses that the company had for recruiting, training, etc. The amount you quote looks rather high.

Second, liquidated damages are not a fixed amount. They get lower over time, since the company recoups it's investment in the H1 person by that person generating income for the company.

This looks more like a penalty for leaving the job early, which is not allowed. Simply calling it "liquidated damages" without it actually being liquidated damages doesn't make that legal.

You should discuss your situation with a good immigration lawyer. A lawyer can go through all the paperwork and give you detailed advice.

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  • 3 weeks later...
  • 2 years later...

Hi,

I recently changed employers and had signed a Liquidated Damages clause with past employer which states I must pay a specified amount if I did not stay with them for a specified time.

Since I quit about 2.5 months before the deadline, they are asking to pay the liquidated damages now. Please advise on how I should proceed.

 

Here are a couple of redacted/modified statements from them in email. 

 

“...u executed a Liquidated Damages Agreement towards the _company_ incurring administrative and legal expense of preparing and processing your H1B visa.  Under the terms of Agreement, if you do not remain employed with us for at least _x_ years after your last visa application process, you are required to reimburse us $$$$ for its expense and cost - regarding the administrative and legal processing costs for your H1B visa.

Please note, as mentioned we may enforce the collection of this amount in ckt ct in Ky.”

 

Thanks,

Anonymous

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