Employer asking for VISA Related - H1B Transfer Cost/Refund,else they will take legal action

EmpX(a consultancy) started my H1B transfer(premium processing) after successful Client Interview. They filed the petition and Receipt No is generated.
I signed Employment agreement with Emp X stating start date(in future) and Salary details but nothing related to H1B VISA Cost/Refund Payment in case I dont join.
Now I don’t want to join Emp X because my current Employer gave a hike & started GC process.
I mailed Emp X of my decision of not joining them. they called me and told below actions against me.

  1. Reimburse premium transfer + attorney fee(Liquidated damage), else they will withdraw USCIS Application marking me under Fraud category, which will give RFE everytime I go for VISA Stamping
  2. If I default and don’t pay liquidated damage within 30 days, they will handover to collection which will be a nuisance for you and affect your credit report.
    Please suggest/advice of legal trouble I may get into?


  1. By law, they are required to pay for the H-1 fees and not you. They can ask for premium processing fees $1225.00 and I am not sure about the attorney fees. Also, there is nothing like Fraud category and getting RFE all the time. Its more of a scare tactic.

  2. I think they can do this and send it to collections. You won’t get into legal issues but it may impact the credit. Its better to talk to a labor attorney about your case.

Thanks Saurabh for your reply!
While searching over internet I found this link -

ILLEGAL DEDUCTIONS: Your employer may not
require you to pay, either directly or indirectly, any
part of the petition filing fee; or to pay a financial
penalty for leaving employment before a date set in the
employment contract; or to pay employer business
expenses (such as attorneys fees for preparation and
filing of the H-1B Labor Condition Application).

Does this DOL Statement give me some protection from Employer scare tactics?

Yes, it gives ammunition. Lot of attorneys give 1/2 free consultation. Make use of that to understand all aspects of your case. You can also post on avvo.com and attorneys over there can provide a quick response.

Hi, please confirm me what happened to your case I am in same boat