Non-compete aggreement

M

mansee

Registered Users (C)
Not really 485 issue but thought some of you could help me.

Scenario:

worked with company-A for 5 yrs. last project for client-x. Quit company-A in 2000.

joined company-b for some other client. quit company-b in late 2000.

joined company-a again for the pervious client-x. (when re-joined company-a, signed non-compete agreement mentioning will not work for any of their clients in future or else have to pay some fee....btw it was not a direct client...between company-a and client-x, were 2 middle companies taking their share)

resigned from company-a in 2002 and joined company-c...still @ same client-x (the reason i left company-a in 2002 bcoz my 6 yrs h1 was about to expire and labor was not cleared. whereas company-c showed interest in processing 140 with labor substitution and it got approved in 5 mths)

Still with company-c and working @client-x for last 6 mths.

Now after a gap of 6 mths, rcvd a letter from company-a, asking for $$,$$$ as per non-compete agreement or else they can take legal action.


Question:

1. what should i do, pay or ignore?
2. Is company-a just threatening me or they can sue me?
3. has anybody had such experiences?
4. any forums to discuss such issues?

thanks
 
in which state are you. Like in California this will be void SO it depends on state to state. Check it out if california i can happly help you get some cash out of that employer by sueing him .
 
Client in MN, Company based in LA ...

Client in Minnesota, Company based in Louisiana ...
In that case which state law applies?
Do you know any good lawyers?

thnks
 
Same Situation

Hi,
Recently I had the same problem with my Co. Even though I did not join the client but working for the same client through another 3rd co. not related to anyone.

Here is the situation.
I join Co. A in 1999 and started working in 2000 for Co. B (Middle Man) finally at Client X

Now in 2003 Co. A becomes direct vendor to Client X.
I resign from the Co. A and join Co. C to work for the same Client X.
In few days I get a notice saying that its non-compete and you can not work for any Co. which are there clients say X

Please advice urgently. I have to resbond by Monday 4PM.

Thanks
redearth
 
Me going through almost same situation. But since my GC got approved yesterday...I am less worried. I have a arbitration case to be held next month in Chicago. Though I joined the client, the original employer was not lending his services directly, it was through a sub-contract, so they cant say I joined the client. Anyway had to shell out a hefty sum so far to the lawyers. Will post more details once the arbitration hearing is held.

thanks
 
I do not know what I will be doing. Can anybody advice me. It will be very helpful. I do not have even my GC.

Thanks
 
Well readerth, calm down, read your non-compete clause. I know this is very stressful. Get a good lawyer , again I know it costs a lot of money but I dont see any way you can avoid this, unless you decide to back off.
What does the penalty clause in your non-compete state? Is there is a monetary figure attached to it? If yes, then try negotiating, else dont know..but in any case I would certainly be looking for advice from a good attorney.

All the best.
 
They haven't put the penelty values yet. I have to pick up another letter from their lawyer today at USPS today as it was certified and I was not at home.

May be that letter has more to say. I am contacting my middleman and their lawyer as well as other lawyers in GA, Atlanta.

I will keep updaing this for more details at the end of the day.

Thanks
redearth.
 
Non-compete

Guys,

the law applicable in this matter is of the state where the contract will be executed. it does not matter if it is direct or indirect client. All std. non-compete clauses include this direct or inderect words and also the timeframe upto which you can't join the clients. This is applicabale even if you quit or they terminate you. I too had to go thru this and back out as I paid $75 per hour to one immigration lawyer in Illinois just to go thru each and every para of the clause and get the explanation.

after which though he was american and a 'lawyer' i liked him for his honesty. he told me openly there is no point in fighting this case in IL as you will not win. these were his words almost verbatim ' I am here to make money, i can take your case but i will be charging you on a per hour basis whenever i have to work on your case, plus the fact that till the case has been adjudicated you cannot continue to work for the client, also if you find a different job in some other state the time and money taken for you to travel , the leave of absence from your employer at that time and not to forget that once the employer at that time comes to know the reason for your leave will much appreciate to consult with someone who is in legal hassles" . I will still take your case but the chances of winning are zero as of now. sit down for 15 mins . relax , go thru the points I mentioned and even at a later date give me a call and I shall be more than happy to help you.

Secondly whenever a firm or attorney prepares a non-compete clause he makes sure their backs are covered otherwise your earlier employer would sue the hell out of them for having made an improper agreement.



You can break/win a non-compete clause on the foll. cases.

1) the state where the contract will be executed does not permit it.
2) if your employer has goofed up on some isuues like not paying you on time for any reason and you have evidence of the same. except you have given in writing that I am going on unpaid vacations due to whatever the reasaon might have been.

3) If you know that another employee, having the same contract has violated the non-compete agreement and your employer has let him go.
4) The employer decides not to go after the employee after receiving a response to their attorney's letter from your attorney.

Lastly my personal take is it depends on your client too. forget middlemen. your actual client. if they are really a big brand name firm your employer might not be willing to take on them if they decide to intervene. Also some employers just send the initial letter to the client and you and take no action against the client. The client in the meanwhile might weigh whether you are worth the hassle and ask you to leave. ( This would have happened in my case I felt).
I backed out of the whole affair after having learnt this lesson.

The above is just my feedback. Pls. consult an attorney for advice.

hope the above helps. whatever happens do not try to reply to an employer's attoney's mail yourself. ENGAGE A GOOD LAWYER.

ciao
 
Thanks for the detailed reply.

I have another thing to ask: Her it goes.

I signed an agrrement with my employer to apply for my GC processing. Now I am leaving them as they did not do anything.

But the agreement says .............

Mutual Understanding to Process Green Card or Permanent Residency Application

The underlying intent of this document is to come up with a resonable understanding before the application for the Green Card or Permanent Residency between the employee and the company. However this document does not gurantee amployment for any length of period. C. in its relentless pursuit to provide excellent benefits to employees, agrees to process the GC application through the designated or corporate immigration attorney. Comapany does not guarantee the outcome for the application process.
Co. agrees to bear the total cost involved in the GC application process with the following limitaions or conditins. An employee must be willing to sign this documentbefore the HR dept can set the process in motion.

1. Employee must be willing to stay wiht the comany during and while the application is in process. SInce C. Commits considerable amount of guaranteed upfront money to attorney, employee agrees to bear the cost by willing to repay, if the decides to part with the co. before the completion of GC process.
2. If employee decides to part with the co. within one year after the process befgins employee agrees to pay back $3500 to the Co.

Can anybody Please advice the validity of the adove.

I will highly appritiate it.

Thanks
 
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