Any risk in rejecting contract opportunity after H1-B transfer RFE


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I work for Serviced based company with H1-B visa, I got a job offer through consultancy as a contract position. I had accepted their contract agreement and initiated for visa transfer in premium mode. Consultancy paid for the visa transfer application and I paid for the premium processing. After 15 days of processing I got RFE, now I decided to withdraw my resignation in current organization and not go forward with contract position as I felt very risky to work as contractor with unapproved visa.

I had signed their contract agreement and I-9 form, could you advise me if there is any legal action that the consultancy can take in this scenario and with below point from the contract.

Employee will owe XX the following early termination fees as follows:
Employee will owe $10000 if he leaves in 1 month of employment
Employee will owe $8000 if he leaves in 2 month of employment

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First off, a penalty payment if a person on H1 leaves before an agreed-upon date is illegal. 20 CFR 655.731. An employer with a clause like the one you quote is shady and should be avoided.

Second, if you haven't started there yet, you haven't entered into employment yet

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