H1B - Agreement

[Venky1985]

Hi

I came on H1B Visa from India to US through an employer and I signed the offer letter which says about the agreement below.

I resigned from the company after serving for 10 months in US. However, the employer stopped my last 1 month salary and didn't give my pay stubs yet.

Here is the agreement description:

Liquidated Damages

Should Employee voluntarily terminate this Agreement prior to the 12 month

anniversary that Employee begins employment with the Company, Employee agrees, understands, and

covenants that he/she shall pay to and compensate Company for Company’s substantial costs relating to its

recruitment, relocation expenses, and training of the Employee. Because Company’s damages resulting from

such early termination prior to the 12 month anniversary of employment are impracticable and extremely

difficult to fix in an actual amount, Employee and Company covenant and agree that the liquidated amount of

damage presumed to be sustained from any such early termination shall be [Ten Thousand Dollars

($10000)]. That sum is agreed on as compensation for the injury suffered by the Company, and not as a

penalty to the Employee. Further the parties agree and acknowledge that the liquidated damage sum is a

reasonable estimate with respect to such damages. Employee also agrees to pay all such damages at the time

of termination, and further agrees and covenants to pay for all attorneys fees’ and costs arising out of the

enforcement of this provision.

Here are my questions.

-> Can you help me here about the options for me to get the salary paid from them?

-> If I contact DOL, Will there be any problem for me with this agreement letter?

Note: I have given proper 2 weeks notice period.

You help will be greatly appreciated in this regard.

Thanks

[omshiv]

dont contact DOL...the company is right in not paying you the last month's salary...the agreement clearly says that...and inspite you ask us!

[t75]

Have the document read by an attorney. Some - but not all - contracts such as this are binding. It depends on many factors including the state so be sure you use an attorney licensed in the proper place.

[sam1586]

Thumb Rule:

1. There is no bonded labor in this country. meaning, no agreements are valid.

2. If you have approved timesheets, then they are supposed to pay. Its your money.

[omshiv]

Thumb Rule:

1. There is no bonded labor in this country. meaning, no agreements are valid.

what bonded labor you are talking about? this is the Employment document which has meaning to it.

[chakrakr]

dont contact DOL...the company is right in not paying you the last month's salary...the agreement clearly says that...and inspite you ask us!

No company is not right in holding last month's salary. I agree with you though that the agreement seems to be valid (sam1586's post is hillarious "no agreements are valid" --- so it is a free for all society :) ) .

However, the employer can, under no circumstance, hold wage of an H1 employee. OP can very well complaint to DOL.

Having said that, employer is within his rights to sue OP in a court of law for breaching the Liquidated Damages agreement.

[JoeF]

dont contact DOL...the company is right in not paying you the last month's salary...the agreement clearly says that...and inspite you ask us!

A company can NEVER withhold the salary. That is against labor laws, and a contract can not override the law!

[Venky1985]

I'm confused..Folks..Is it better for me to leave it like this ? or is there any other way to get that salary paid?

They are not giving me the pay stubs as well even if they stop it.

I think as per Law, they have to give me pay stubs at least. right.

Please guide me here

[omshiv]

What the company is doing here is instead of filing lawsuit on their former employee( note that the damage amount is not mentioned) which will cost them...they are just holding his/her last month's salary.

Morally it's not right but hey OP should just settle at that.

[GcLLC]

However, the employer can, under no circumstance, hold wage of an H1 employee. OP can very well complaint to DOL.

Having said that, employer is within his rights to sue OP in a court of law for breaching the Liquidated Damages agreement.

Once when I quit, I had a day of unpaid leave pending. The company had "advanced" me the leave. When I quit I had to pay them back separately for the leave and they could not deduct it from my salary. (However they were kind enough to return my check a the note that they are waiving that one extra day of leave).

[snehalmdave]

Is this agreement signed in India ? then I think this agreement is not valid in US.

[Venky1985]

I signed in India..But the letter is issued with US Office Name...

[chakrakr]

OP, do not leave your salary. Ask for it. You will need your paystubs.

As for the agreement, even though it is signed in India, it is most likely valid. You can work with a Labor Lawyer to find out how much of it is enforceable. However, Liquidated Damages normally diminishes with time. So, if your contract it for 12 months and you quit after 10 months, you should be liable to pay only a fraction of the amount. A labour lawyer can help you

I suggest the following (in order) --

Contact a labor lawyer and review the conract on how much you are liable for .

Demand two months pay (just a formal letter and a threat to complaint to DOL will do)

Offer to pay the amount determined by Labour Lawyer

[Venky1985]

thanks..Is there any time limit to complain to DOL after we resign from an employer?

I mean..I heard we should complain to DOL with in one year after you quit the company?

[chakrakr]

What the company is doing here is instead of filing lawsuit on their former employee( note that the damage amount is not mentioned) which will cost them...they are just holding his/her last month's salary.

Morally it's not right but hey OP should just settle at that.

Not morally . It is legally not right to holding ANY salary.

[Jyothis]

Venky, hire an attorney and have them review it. I think it is worth that effort.