Consulting firm restricting employees joining Vendor company

[smvijaykumar]

Hi,

I am working for an Indian company which processed by H1 and working for vendor company A. My company is asking me to sign an employer agreement which restricts any employee joining vendor company for the period of 1 year or more from the date of termination. Excerpts from the document:

Restrictive Covenant

(a) During the period of employment under this AGREEMENT, or if this AGREEMENT is terminated, or prior thereto,for any reason by either party, whether for cause or no cause, EMPLOYEE shall not, directly or indirectly, perform any Services for or solicit any client of the Employer or end clients of such client which are directly or indirectly serviced by the Employer, with whome the Employer has done business within one year prior to the termination of this AGREEMENT, enter into or engage in any manner or way in the performance of Services for any customers of Employer either as an individual on his own account, or as a partner, joint venturer, employee, independent contractor,shareholder, profession corporation, corporation, or otherwise, for a period of 18 months. A customer of Employer shall be any person or entity that has done Business with the Employer with one year prior to the termination of this Administrative employment with EMPLOYER.

Now my questions are:

1. is this document valid?

2. is Arizona law permits this?

3. what are all the options available for an employee to refuse? or rights of an employee?

4. How one can come out of this kind agreements if employer enforces it?

Thanks and Regards,

smv

[JoeF]

Such non-compete agreements are usually valid, except for California.

You can not "come out" of such agreements. You are an adult. If you don't like such agreements, don't sign them, and don't work with the employer.

[cap-gap]

they are generally valid..it has nothing to do with employee rights..you have the right to refuse and find a regular employer that offers at-will employment instead of brokers..

get a consulation with a labor attorney in ur local area for state specific mandates..

[smvijaykumar]

Such non-compete agreements are usually valid, except for California. You can not "come out" of such agreements. You are an adult. If you don't like such agreements, don't sign them, and don't work with the employer.

I heard from one of my friend that such documents are not valid in Arizona as well. can anybody confirm?

Thanks

[smvijaykumar]

Thanks for the replies. I heard from one of my friend that such documents are not valid in Arizona as well. can anyone confirm that?

[JoeF]

I heard from one of my friend that such documents are not valid in Arizona as well. can anybody confirm?

Thanks

They are not valid in CA because the CA Supreme Court said so in a court decision. I have not seen anything comparable for AZ.

You would need to discuss this with a labor lawyer.