acewoman Posted February 26, 2015 Report Share Posted February 26, 2015 Hi,I came to the USA last Dec via a desi company on H1B. Now my client wants to hire me.Now the issue is, the contract with the desi company states the following1. If Employee becomes a permanent employee of the client or a prospective client, the desi company shall be compensated in an amount equal to 30% of Employee’s annual salary in consideration for releasing Employee from them.2. Or pay an amount equal to 30k usd to the desi company.I work in california and the client is not a direct client of my company ( there is a middle layer with whom i havent signed any contract ).I presume my will send me a legal notice if i leave them.But its crazy to not join as a permanent employee for a big firm.It would be a great help if you can share some thoughts about the validity and enforceability of these terms in the US.thanks,Ace Link to comment
jairichi Posted February 27, 2015 Report Share Posted February 27, 2015 I think this agreement is not enforceable in California (I might be wrong). JoeF correct me. Talk to a good labor attorney. Link to comment
acewoman Posted February 27, 2015 Author Report Share Posted February 27, 2015 Thanks Jairichi for the comment.ya thats the confusion. mostly its not enforceable as per coupla other comments too.Though no one is sure. Link to comment
JoeF Posted March 1, 2015 Report Share Posted March 1, 2015 https://en.wikipedia.org/wiki/Non-compete_clause#California "Non-compete agreements are automatically void as a matter of law in California, except for a small set of specific situations expressly authorized by statute." "The preeminent court decision discussing the conflict between California law and the laws of other states is the 1998 decision Application Group, Inc. v. Hunter Group, Inc. In Hunter, a Maryland company required that its Maryland based employee agree to a one-year non-compete agreement. The contract stated that it was governed by and to be construed according to Maryland law. A Maryland employee then left to work for a competitor in California. When the new California employer sued in California state court to invalidate the covenant not to compete, the California court agreed and ruled that the non-compete provision was invalid and not enforceable in California. Business and Professions Code Section 16600 reflects a "strong public policy of the State of California" and the state has a strong interest in applying its law and protecting its businesses so that they can hire the employees of their choosing. California law is thus applicable to non-California employees seeking employment in California." Link to comment
wiweq Posted March 2, 2015 Report Share Posted March 2, 2015 Hire an attorney get a relief. Link to comment
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