Legal Question in Employment Law in California
Can employer prevent a client from hiring me?
My employer has all our clients sign an agreement like below. I have been working onsite for several months and the client would like to hire me.Is this agreement completely enforceable?
Company(C) and Client(CL) agree that C will suffer damages if CL hires an employee(emp), frmr emp, or ind contractor(ctr) of C. Such damages include but are not limited to reduced prodctvty, cost of srching for new emps, loss of billings, and cost of training new emps. Therefore, C and CL agree that CL will compensate C if CL hires a current or frmr emp during the performance of Services or within the 18-mo period following the date of the last invoice for Services. CL agrees to compensate C within 30 days of hire by paying C the greater of (a) 33% of the annual compensation that CL or C pays to the emp or (b) $25K. This section shall apply to the hiring of an emp, frmr emp, ind ctr, or frmr ind ctr as a full- or part-time emp or as an ind ctr who provides consulting Services. ''Frmr emp'' and ''frmr ind ctr '' shall be defined as any emp or ind ctr who received any payments from C within the 12 mo preceding the date of hire. CL and C agree that the amount of damages payable under this section is compensation for C's damages and is not a penalty.
1 Answer from Attorneys
Re: Can employer prevent a client from hiring me?
Yes, these agreements are legal.