Validity of Employment Agreement after converting to Contracting


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I had signed an Employment Agreement as part of offer with a US 'Desi Consultancy' who processed my H1-B visa. For this purpose, the Agreement was for Full Term employment with $$ yearly salary and all involved benefits.

However, when I came to US, I joined as a Contractor working on hourly rates. I did not get salary for 3 months when I did not have a Client/project (actually, I was paid monthly salary which was deducted from my earnings, once I got into project).


Lets suppose my Employer is B. I am currently working for a client D through a vendor C. The contract is between vendor C and my employer B, which is going to be over in few days. I am being offered a permanent position by client D, and my H1 visa transfer has also happened.


There is no contractual obligation between D and C to prevent me from joining. However, my Employment Agreement that I had signed initially, has a non compete clause of 2 years and my Employer is threatening me.


I require assistance in understanding, if this EA I signed, still holds good as I never signed a new agreement after converting to Contracting (I joined from Day 1 as contractor and never a full time employee).


Please advise me if my Employer can sue me if I join client D as full-time after the Contract is over.



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You are never a contractor for your H1 employer, on H1 a person cannot be working as contractor. You are employee of your H1 sponsoring employer, and he has to pay you full salary every-month. Not getting paid on H1 will create trouble in future. And yes that agreement is valid if you have signed on it.


File a complaint against this FRAUD consulting employer and start looking for new employer. You will be in more trouble if you work for this fraud employer.

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