Legal Question in Employment Law in California

Competition Clause in the employment contract

I came to know of a vacancy in a software development company through my friend and attended interview for this company. However, this company told me that they cannot hire me as employee, but, can only take me as a contractor. I am on work visa, and hence I cannot work as an independent contractor. I can only work for some company. So, I talked to a consulting company and introduced the consulting company to the end client. Finally, I joined the consulting company and started working for the end client. The consulting company got 30% commission. They also made me sign a contract. Here are the exact wordings of the contract : ''''During the term of employment and 12 months thereafter, if employee is hired as a permanent employee or contracts as an independent contractor with the end client to whom the employee was introduced by the consulting firm is a breach of agreement''''.

Is this applicable to me ? I introduced the end client to the consulting company. Since the consulting company did not introduce me to the end client, the above contract statement should not be applicable to me. Can someone reassure me about my reading of the contract ? Thanks.


Asked on 10/24/03, 11:27 pm

1 Answer from Attorneys

Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: Competition Clause in the employment contract

If you signed the contract voluntarily you are bound by the terms, regardless of who made the introduction. If you were forced to sign the contract, you may have an out, but you will have to prove you signed it under duress or fraud.

The consulting company is not so interested in who made the introduction, it is interested in getting its commissions.

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Answered on 10/27/03, 6:52 pm


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