We are the employers in Indiana and we have a contract with one of our employees that we will provide the training and the employee has to work for 2000 hours with our clients after completion of the training. The contract also provides that in the event the employee departs earlier than 2000 hours, the employee must pay to the employer $10,000 or the amount of loss of earnings to the employer caused by employee's early departure, which ever is less.
The contract was signed in the April, 2007 and the employee underwent training for two months in April, 2007 and May, 2007. Because the employee has to finish the final semester of his bachelors' education, the employer allowed the employee to finish his school and join the employer's clients after completion of training.
In June, the employee calls the employer and says that he has a job offer from ABC company and he wants to accept the contract. The employer says fine, but come to Employers' office, settle the contract, and pay $10,000. The employer also mentions that he can lower the amount of contract settlement and will also allow the employee to pay the amount in installments in 2, 3 or even 4 years after talking with the employee.
Since June until now, the employee does not take employers' calls, does not want to come to employer's office to discuss the contract settlement, does not want to surrender the training material and does not want to pay any amount to settle the contract. The employee wants the employer to let him go for nothing. The employer does not know the employee's whereabouts as of today.
Is there anyway the employer can report to any authority about the pending contract so that a new employer who runs the background check to hire this employee becomes aware of the pending contract and not hire this employee?
Please advise. Thank you for your time and reading all this.

