Legal Question in Employment Law in California
Changing employers, signed contract for an year
I got hired by company ''A'', which made me sign a contract stipulating that I cannot resign. In case of my resigning the contract says I need to pay company ''A'' $30000 plus any legal fees. I just got placed at a client of company ''A'' about a week ago. However, in the meanwhile I got an offer for full-time employment from company ''B''. If I leave company ''A'' and join ''B'', is it possible for ''A'' to take any legal action against me? Are such one-sided contracts legal at all. Also, ''B'' has asked for my last pay-stubs which I will not get for another month.
I will appreciate if someone could advice me what to do in my situation.
2 Answers from Attorneys
Re: Changing employers, signed contract for an year
Be happy to help you. Does not appear to be a valid contract. Call to discuss. Don Holben 800-685-6950
Re: Changing employers, signed contract for an year
The last time I checked, slavery was still illegal. Without reading the contract, it certainly sounds like this contract is uneforceable, at least in California. The intent is probably to keep you from going to a competitor, which California courts have found to be a violation of California law.
The only circumstance I am aware of where an employer can require that the employee return money if they resign within a certain time frame, is where the company advances relocation expenses or related costs. If this is simply some form of penalty for leaving early, or to recoup the cost of training, it cannot be enforced in California.
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