One H1B worker in Ohio was going through an unexpected financial burden. The employment offer letter stated that they had to pay their employer $15,000 for “liquidated damages” if she were to resign before completing a year with them. Now, the worker wonders whether such a clause is enforceable and whether it can be used by employers to take legal action against her for leaving early.
I’m so concerned about my future, can they indeed ask me to pay $15,000 for quitting early?” – worker asking for help from the community. With many on H1B visas, its tied to their immigration status, so the stakes are so much higher for the many.
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Liquidated damages clauses may be legally enforceable; however, there are certain limits placed upon this. The law in the United States states that such clauses must be reasonable and not act as a penalty. If the $15,000 is deemed excessive, it could be ruled by a court as invalid.
Generally, professional employment law experts advise seeking assistance from an immigration status and quitting would affect their immigration visa.
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“Feeling trapped in a job is stressful enough, but when it involves thousands of dollars in penalties, it can be impossible to leave,” said one legal expert. In this case, clarity on the legality of the clause is what this worker needs to determine whether to stay or fight the contract in court.
In such cases, seeking professional legal advice is highly important. All this trouble of financial penalties, coupled with the uncertainty regarding visa sponsorship, makes the situation extremely emotionally distressing.
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