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Payment for not searving long notice
Hello,
I'm an foreign national working in the US currently with H1B. I have worked in the US for around 5 years. I was working for a multinational company for 10 years, majority of which is in the US. I've recently changed my job and currently working with a different employer. Last year, after a 10 months of company given Canadian assignment when I returned to the US , my former employer made me sign a new agreement which said if I quit the company without providing a 3 months notice, I'll have to pay $10,000 USD. But because of several reasons, I left that company and joined the new company(present). I was only able to provide 3 weeks of notice. To my understanding from the DOL website, an H1B employer is prohibited from collecting money if an employee voluntarily separates from the employer without providing the agreed notice. My question is would it be lawful for my former employer to collect the $10,000 from me for failing to provide agreed 3 months notice before leaving them?
I found below from DOL website
Early Cessation Penalty/Liquidated Damage
An H-1B employer is prohibited from seeking or collecting a penalty, even if agreed upon with you, as a result of you terminating your employment before the stipulated end of an employment contract, usually the length of the visa.
Some characteristics of a penalty may include:
A fixed termination payment regardless of the term of the contract and the length of time during which the contract was in effect before termination;
An unexplained or unjustified amount of money which is not attributed to any particular cost or loss;
An amount of money which appears unreasonable in comparison to your earnings; or
An agreement that is the result of fraud or where it cloaks oppression.
I'm an foreign national working in the US currently with H1B. I have worked in the US for around 5 years. I was working for a multinational company for 10 years, majority of which is in the US. I've recently changed my job and currently working with a different employer. Last year, after a 10 months of company given Canadian assignment when I returned to the US , my former employer made me sign a new agreement which said if I quit the company without providing a 3 months notice, I'll have to pay $10,000 USD. But because of several reasons, I left that company and joined the new company(present). I was only able to provide 3 weeks of notice. To my understanding from the DOL website, an H1B employer is prohibited from collecting money if an employee voluntarily separates from the employer without providing the agreed notice. My question is would it be lawful for my former employer to collect the $10,000 from me for failing to provide agreed 3 months notice before leaving them?
I found below from DOL website
Early Cessation Penalty/Liquidated Damage
An H-1B employer is prohibited from seeking or collecting a penalty, even if agreed upon with you, as a result of you terminating your employment before the stipulated end of an employment contract, usually the length of the visa.
Some characteristics of a penalty may include:
A fixed termination payment regardless of the term of the contract and the length of time during which the contract was in effect before termination;
An unexplained or unjustified amount of money which is not attributed to any particular cost or loss;
An amount of money which appears unreasonable in comparison to your earnings; or
An agreement that is the result of fraud or where it cloaks oppression.
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