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View Full Version : Need to understand about the Liquidated Damage under H1-B Visa


H1BAlien
Jun 10, 2008, 08:14 PM
Greetings to all,

I have recently put my resignation to my ex-employer A(Small consultancy in NJ) & joined an employer B (Billion $ company).

I had an agreement with my employer A for 18 months to stay. I was in project for 6 months. After that I was on bench for almost 2 months. They did pay me for 1 month, when I was on bench but after that for next 2 weeks they didn't pay me full salary only few hundreds of dollars & within next 2 week I found a full time job & joined them. I have paid them the deposit amount of $2500. They didn't provide me any receipt for that, even upon asking for that. Reply for that was is to just trust the employer A.

As per the LAW I know that if you are not being paid you will be out of status, so I decided to join employer B & be in a status. My H1-B transfer is in process.

Now after resigning, employer A's attorney send me the email asking to pay $20000 as a "LIQUIDATED DAMAGES" within 10 days. It's a huge amount which I am not able to pay them back.

Can some one suggest me where I am standing? I know that I have some positive point to fight with this case. How can I proceed further in this regards? Do I need to reply to the email which I received?

I need to understand what's the meaning of LIQUIDATED DAMAGES? What amount they can ask me to pay back as per LIQUIDATED DAMAGES? Even more do I have any chance to notify DOL about not being paid & asking me to pay back this huge amount? Does my new H1-B transfer gets affected with this issue or not?

I know that I have asked lots of question but I am bit confused how to deal with "US LAW" & get rid of this tensed situation.:confused:


Waiting for your reply,
Thanks in advance.

lawanwadee
Jun 11, 2008, 09:58 AM
You signed the contract for 18 months, not 6. You are legally liable for this sum because you breached the contract, but the truth is this is how small companies take advantage of H-1B quota. Since you are filing for H-1B transfer, you will need consent from the first employer, or this dispute will jeopardize your new application.

Get yourself an attorney and negotiate with the first employer ASAP. You have to get this issue settled within time frame of your visa.