I am recent MBA graduate. One company in New Jersey offers me a job with a 1 year of commitment contract. This contract is written on company’s latter head. It says if I leave this company before the contract terminates I have to pay $10,000. Guys, this salary is low. I dont want to stay here more than 5-6 months. Is anybody knows employment law in US? Do I have to pay them if I leave this job before the contract terminates? Please answer me with some online reference, so I can take a look. Thanks a lot.
Sounds like a scam to me.
I think they can do this if they are providing something of value to you (i.e. some sort of training program, etc).
dont take a job if you dont want to stay here for 1 year…
They gonna provide me 2 months paid training.
This has to be one of the Infosys, TCS, Wipro’s, Cognizant’s … They can go to all levels to get those hedged dollars! Either them of any consultancy firm that hold your H1-B. They do file a lawsuit if you breach the contract. So just don’t take the offer if you think you are not going to be around for next 365.
Whether or not they will take the time/money/resources to sue you for $10k is really not the question. It really depends on whether YOU have the time/money/resources and inclination to deal w/ a lawsuit. They might have lawyers on retainer who are just sitting around waiting for something to do.
So there are a few questions: 1) Is the contract valid? Ans: Of course it is and is just like lots of other contracts that people sign. They provide something of value (a job is good enough for consideration) and you agree to stay for a year or they get to recoup losses. 2) Would they do anything about it? Ans: Depends when you left. After 2 days = no chance. After 2 month training program = probably. After 11 months = Absolutely, but why would you leave after 11 months when you can hang out for another month and not have a contract dispute. 3) Would they need teams of lawyers to get their $10,000? Nope, you would need tons of lawyers to try to keep them from getting a judgment. You can’t do this for some economically sensible amount. You would lose a judgment and it would be in your best interest to start paying before they went through the legalities of collecting (which they would also be successful with). 4) Does the contract make sense? This is an important point - this company may not be the kind of place you want to work because they are shackling you to it. Companies that are good places to work shouldn’t need to do this.