Legal Question in Employment Law in California
Fired when a contract still exists
I am on a H1B work visa.I was brought to US by my employer, which is a MNC , not a consulting company.
He paid me $10k of relocation, and got to sign an agreement that If I leave the company within 1 year, I have to pay back $10k.But, the agreement did not mention about what If the employer voilates the agreement, i.e if the company lay me off.Now, I am laid off after 8.5 months.Though I knew, the economy situation is bad , I did not try anywhere outside for another job as I will have to pay $10k if leave this company before 1 year & so, I was of the impression that they won't lay me off for one year.Now, Can please advice whther Can I take legal action against this company?.
Thank you & I will appreciate your response.
2 Answers from Attorneys
Re: Fired when a contract still exists
Whether you have a one year employment contract depends precisely on how the contract was worded. It must be reviewed by a labor lawyer to provide you with an opinion on its enforcability. Since you did not quit your job and were not fired for cause, you have some good defenses to any attempts to recover your moving expenses. You were prevented from performing your part of the contract.
Re: Fired when a contract still exists
Get another job. You are obligated under the law to mitigate any damages you incur as a result of a breached contract.
You have no legal action as best I can tell against the employer, unless despite your diligent efforts to get another job you are simply unable to get one. In which case you might be able to sue for the salary you expected to receive but didn't. I'm not sure how much that would be, but unless it's say over $100,000, litigating the breach would likely overwhelm anything you might recover from such a suit.
And don't worry about the relocation expenses. If you did not voluntarily leave your position, the employer has no recourse against you for those advanced expenses. If they attempt to collect those, you should counter with a suit for breach of the contract not to terminate your employment except for good cause for the first year.
Good luck.
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