Legal Question in Civil Litigation in Michigan

Non competance clause violation

I need a small clarification from you about my employment agreement.

I have signed an employment agreement with a consulting firm that is based in Michigan and the contract is subject is Michigan Laws.

My employer placed me in the project through another main vendor, say XXX.

XXX and my employer do not have any non-comnpetance agreement.

In my contract with my employer there is a clause that says that I cannot take employment with my client or client of the client for a period of 1 year after I resigned from the company.

As per the terms I gave two week notice to my employer and severed the relationship.

I started my own company and entered into agreement with the main vendor XXX and continue working in the same project.

Now my employer says that I violated the employement agreement and I have two options 1. To work in the same project through their firm 2. Leave the project and get a job elsewhere.

My point is that I have not taken employment with the client in the first place; I have no relation with the client at all; I work in the client's place through my company and I am a contractor to my company.

As per the rule; I have served two week notice resigning from my previous employer.

In the above si


Asked on 7/11/06, 11:56 am

1 Answer from Attorneys

William Stern William Stern, P.C.

Re: Non competance clause violation

The law is not necessarily back and white. There are many shades of grey. You may be alright in that you comply with the strict terms of the agreement. Also, there is a presumption that you should be able to set up your own shop. On the other hand, by taking clients of your employer, you may have violated the spirit of the deal. Do what you are going to do and if they don'tt like it, they'll sue you and you'll defend it. What else can you do? William S. Stern

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Answered on 7/11/06, 12:02 pm


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