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H-1B termination

Employers who do not properly terminate an employee are liable to pay the full amount of the employee's salary until the H-1B petition expires.  That was the conclusion of the Administrative Review Board of the Department of Labor (DOL) in a decision dated September 29, 2006 (click here for the full text of the decision).

The obligation to pay the salary promised in the H-1B documents continues until there has been a bona fide termination of the employment relationship.  Bona fide termination involves three actions by the employer:

  1. Clearly informing the employee that he or she is terminated.

  2. Notifying the USCIS of the termination of the employment.  (The Labor Condition Application filed with the DOL should also be withdrawn).

  3. Offering to pay the employee's return transportation to his or her last place of foreign residence (not required if the employee quits).

Employers who do not follow these steps may be liable for the employee's full salary for several years, even though the employee has found other employment and another salary.




Copyright 1999-2006 Law Offices of James A. Bach All rights reserved

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