I think this is only a prohibition on liquidated damages clauses though (plus making the act of even writing a penalty clause, which are already unenforceable, unlawful).
It doesn't appear to be an exclusion of actual damages due to e.g. a one year contract worker quitting after 6 months, if it actually caused their employer damages.
It doesn't appear to be an exclusion of actual damages due to e.g. a one year contract worker quitting after 6 months, if it actually caused their employer damages.