I am on H1B and I have 1 year contract with my employer. Can i Break the contract? As per the contract if i leave the company before 1 year there a clause that i have to provide 2 weeks notice and $10,000 penalty. My question is
- As per labor law is this bond justified?
- If i break the Bond will there be any impact on my immigration status (My H1B will be transferred to another company)
- Do I need to pay complete $10,000 if i break the bond
Whether you're responsible for the $10,000 depends on whether it is considered liquidated damages (allowed) or a penalty (not allowed). The specific terms of the contract will be very important in this determination, so I'd advise you to speak with an immigration attorney (in NJ or elsewhere as the H-1B issue is federal and the employment law issues are local and federal -- I'm sure all of the attorneys who responded could assist you).
If you terminated the contract, the employer will likely cancel you'll H1B, so they're not on the hook for the wages on your LCA, and you will be out of status.
Good luck!
Christopher Edward EzoldHealth Care LawyerBala Cynwyd, PA ·
I am an attorney licensed in the Commonwealth of Pennsylvania, and the States of Delaware and New Jersey. My practice includes employment, business and health care law. Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania, Delaware, New Jersey or Federal law applies.
That being said, the contract is likely enforceable BUT the damages clause of $10,000 is likely NOT enforceable. The government views the $10k as an illegal reduction of your wages below allowable levels. You will need to transfer your H1B to keep your immigration status, but breaking the contract should have no direct effect. You may owe damages for the breach of the contract, if the employer can prove damages. You should speak with an immigration and an employment attorney before breaking your contract, however.
/Christopher E. Ezold/
You may want to have your contract reviewed by an employment lawyer before taking action as contracts vary by what is contained within the actual document.
