Legal Question in Business Law in California

I am a subcontractor in California. The client wants to hire me directly, and pay me instead of the contractor. Is this a problem? The contractor had me sign a confidentiality agreement.


Asked on 2/15/10, 1:38 pm

4 Answers from Attorneys

Daniel Alexander II Graves & Alexander LLP

I suspect that your contract with the contractor has a provision that you can't solicit or contract with any of its clients directly. I would examine your subcontract very carefully before you do anything. You are guaranteed a lawsuit for interfering with the contractor's relationship with its client.

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Answered on 2/20/10, 2:36 pm

Mr. Alexander is correct. You would need to have your agreement with the contractor examined carefully. Agreements that restrict a person's right to obtain work are disfavored, but they are enforced in certian circumstances, and not going to work for existing clients of your employer is one of them, whether you are a contract or straight employee.

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Answered on 2/20/10, 5:52 pm
Daniel Bakondi The Law Office of Daniel Bakondi

I could look at your contract, if you like. you definitely need to weight the pros and cons before making a decision.

Best,

Daniel Bakondi, Esq.

The Law Office of Daniel Bakondi

870 Market Street, Suite 1161

San Francisco CA 94102

[email protected]

415-450-0424

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Answered on 2/20/10, 6:07 pm
Jonathan Reich De Castro, West, Chodorow, Glickfeld & Nass, Inc.

What you can do will depend on your agreement with the contractor and the client's agreement with the contractor. It seems likely that they are trying to get around the contractor's fees and markup's on your work. You need to be careful or you could find yourself in the middle of a lawsuit by one or both sides. I would be glad to review the agreements with you.

Jon Reich

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Answered on 2/22/10, 10:18 am


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