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Joseph
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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Hi, I have a work visa H1B offered by a consulting company

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Hi,

I have a work visa H1B offered by a consulting company in USA. Now 1+ years work with them. Before I came to USA they asked me to sign a agreement that says If I quit before 2 years I have to pay $3000 each month for remaining months. Also If I quit before 3 years I will be losing my 401k contribution. But I cannot with my monthly salary and they employer didn't give me good increment. And they says even I cannot stop 401K contribution also. Financially and mentally I 'm suffering lot with this. If I quit from this employer can they take legal action against to me? Waiting for your answer.

Thanks
-Rik
Hello and welcome to JustAnswer.

I'm sorry to hear about your situation and hope I can help.

It is extremely unlikely that the contract you signed would be enforcible. First, the employer would have to have a similar obligation on its end for the contract to be enforced. (For instance, pyaing you $3,000 a month if they terminated you before the contract was over).

If there is no such obligation, the contract is unconscionable and cannot be enforced.

Even if the contract were valid, a court would hold that $3,000 a month is an extremely excesssive amount, so the amount would be reduced very
Hello,

Could you please remember to rate my answer positively so I get credit for my work!

Thanks and best of luck!
Customer: replied 3 years ago.

Hi Joseph,

 

Thank you very much for the answer. But I still need confidence answer to give the resignation. So I took following two section from the agreement for your review to make sure this agreement cannot be enforceable by employer and no harm on my new employment .

And also what 'liquidated damages' means?.

Employer in Colorado but I'm working in a Client location in California. Which state law applicable for this matter?

 

Highly appreciate your answer to make me much more confidence.

 

"AT-WILL" EMPLOYMENT

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EMPLOYEE UNDERSTANDS THAT HIS OR HER EMPLOYMENT WITH THE COMPANY IS "AT-WILL" EMPLOYMENT, AND EMPLOYER MAY TERMINATE THIS AGREEMENT AT ANY TIME, WITH OR WITHOUT CAUSE, WITH OR WITHOUT NOTICE, AT THE OPTION OF THE COMPANY. EMPLOYEE FURTHER ACKNOWLEDGES THAT ANY REPRESENTATION TO THE CONTRARY IS UNAUTHORIZED AND NOT VALID UNLESS OBTAINED IN WRITING AND SIGNED BY AN OFFICER OF THE COMPANY UPON DUE AUTHORIZATION FROM THE BOARD OF DIRECTORS OF THE COMPANY


Minimum Employment Period Accepted by the Employee.

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In accordance with the Marketing Agreement executed by the Employee and xxxx Technologies dated xxxx, failure to stay on an assignment(s) procured through xxxxxx Technologies marketing services for a period of less than 24 months will lead to a claim of liquidated damages against the Employee for $3,000 per month for the balance of the minimum 24-month employment period agreed to with the Company. Employee and xxxxxx Technologies further agree that the value of the liquidated damages ($3,000/month), would be reduced to the actual value of the salary /month offered by xxxxx Technologies, if less than the liquidated damages amount of $3,000 per month.

 

Thanks

-Rik

Hello Rik,

Yes, the agreement is definitely illegal, since they are requiring that you pay $3,000 a month if you leave early, but state that they can terminate you at any time for any reason with or without any prior notice.

It would be unconscionable and coul not be enforced against you.
Joseph and other California Employment Law Specialists are ready to help you
Customer: replied 3 years ago.

Thanks for the answer. I have rated your service as Excellent.

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