Legal Question in Employment Law in District of Columbia

Can a consulting agreement include a payback clause for non-completion?

I am a consultant for a government contractor. In my consulting agreement, there is a clause that states ...

''Mr. XXX will be paid $XXX.XX per hour at a maximum of 40 hours per week. In the event that Mr. XXX does not honor the commitment of April 20, 2009 to April 20, 2010 he will forfeit the equivalent of one (1) months billings estimated at 160 labor hours.''

Is this not considered indentured servitude? Is there a way to get out of this agreement and not pay the 160 hours?


Asked on 5/20/09, 12:47 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Can a consulting agreement include a payback clause for non-completion?

Indentured servitude? I doubt it, but one might be moved to ask why you signed such an agreement in the first place?

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Answered on 5/22/09, 12:29 am


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