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Employment Agreement - Is this Legal ?

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  • Employment Agreement - Is this Legal ?

    Hello,

    I have just received an offer from an employer in US. The employer will be placing me at various client sites as a consultant.
    In their agreement they have the following terms :

    Therefore, the parties agree that if, within the first 36 months of consultant's employment, the Employer terminates the consultant for unreasonably rejecting a assignment, or the consultant resigns unreasonably after receiving notice of the assignment,the consultant shall pay to the Employer, as liquidated damages, and not a penalty, the sum of $10,000.00 (ten thousand dollars)

    In addition to the liquidated damages specified in paragraph 2(a) above, consultant shall pay Employer liquidated damages in the amount of $18,000, should consultant voluntarily leave Employer’s employ, or be terminated for cause, less than 36 months after beginning work with Employer.

    Is such as agreement LEGAL ?

  • #2
    Originally posted by [email protected] View Post
    Hello,

    I have just received an offer from an employer in US. The employer will be placing me at various client sites as a consultant.
    In their agreement they have the following terms :

    Therefore, the parties agree that if, within the first 36 months of consultant's employment, the Employer terminates the consultant for unreasonably rejecting a assignment, or the consultant resigns unreasonably after receiving notice of the assignment,the consultant shall pay to the Employer, as liquidated damages, and not a penalty, the sum of $10,000.00 (ten thousand dollars)

    In addition to the liquidated damages specified in paragraph 2(a) above, consultant shall pay Employer liquidated damages in the amount of $18,000, should consultant voluntarily leave Employer’s employ, or be terminated for cause, less than 36 months after beginning work with Employer.

    Is such as agreement LEGAL ?
    If you sign it it will be legally binding on you. many employers have similar clauses in order to safegjuard themselves from financial losses. Ifyou are not comfortable would siggest not to sign it.
    this is my opinion not legal advice.

    Comment


    • #3
      Yes, is most states except California such agreements are binding.
      This is my opinion and not legal advice.

      Comment


      • #4
        Thanks folks.

        Comment


        • #5
          Originally posted by [email protected] View Post
          Thanks folks.
          If the employer is from other state and client and LCA is for CA then which state law will be applicable. I also left the company with 2 weeks notice and my company is asking for liquidated damages. Please suggest if this agreement is valid in CA, if the CA law is applicable.

          Comment

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