Liquidated damage (LD) (LD)

Liquidated damage (LD) is an amount which is fixed or stipulated by the parties at the inception of the contract and which is a reasonable estimate of anticipated or actual damage caused to one party by the other party's breach of contract. It is distinguished from an early cessation penalty on the basis of the applicable state law. The laws of various states recognize that LDs can be imposed on the H-1B worker.