Early cessation penalty
H-1B Visa
Early cessation penalty is an amount which (although fixed or stipulated in the contract by the parties) is not a reasonable approximation or estimate of anticipated or actual damage caused to one party by the other party's breach of contract. Early cessation penalties cannot be imposed on the H-1B worker. They are distinguished from liquidated damages on the basis of applicable state law.
- — H-1B Advisor Glossary retrieved 2014-06-01