2 year contract or $10,000 fine

When I was in India I signed a contract with my employer for 2 years or I have to pay $10,000 as financial losses.

I am on H1B visa and after working for my employer for 6 months and not getting paid my regular salary I had no other choice but to leave him and join another company. Now, when I sent him an email that I am resigning my job then paid my 2 months salary that was pending.

Can he now sue me for breaking the contract?

Below are the details of the contract.

(a) Employee may terminate his employment with Employer at any time by giving Employer a 2- month written notice of his intention to terminate his employment provided it is in conformance to the next paragraph 7.04(b) Repayment of Costs

(b) Employee recognizes that Employer incurs substantial costs for a new Employee, including training, housing, travel, immigration and legal expenses, and that Employer does so with the legitimate expectation that Employee will remain in the employ of Employer for a reasonable period of time. Employee therefore agrees that in the event he voluntarily terminates his employment before the later to occur of (i) 24 months employment and (ii) completion of 4,000 billable hours, he will pay $10,000.00 to Employer to reimburse the Employer for all costs incurred in connection with his employment. Employer and Employee agree that it is difficult to measure the full extent of all such costs and that $10,000 is a fair and reasonable estimate of all such damages. This sum will be paid, by Employee to Employer, within seven (7) days after termination of employment.


Ask that employer to go ahead and do what ever they want to do.

You tell them that you are going to report your non-payment and other harassment immediately. Also you are good to report to USCIS.

If I am you, I will make a good report of all of their non-payments, harassment etc nicely and keep it aside and forget about anything further. If they sue you, immediately take this document and report to department of labor, hour and wage department of your state etc.

Dont pay a penny to them.