How do ex-employer know about non-compete violation

[metis11]

Guys,
My situation is more common, but i have couple of odd questions....

A --> B (Vendor ) --> C (End client)

A is my current H1 holder, with whom i signed non-compete agreement.

End client, c is interested in hiring me. I am also interested. But i told C about non-compete. So, C talked to A for H1 transfer but he is not agreeing for that (even for monetary compensation). But, B is ok with H1 transfer.


So,

1) If i quit my current employer, A. and join C. How will "A" know that i actually broke the contract. Please note that there are no other teams or colleague working for C from A.

2) Will it be possible for my consultant, A to sue me by assuming that i joined C, without any basis or evidence.

3) What if i joined different company D (for 6 months as a bridge company) and come back to C. Can, A, still sue me at random times with out any supporting documents or evidence?


When i looked at net, i found one can sue anybody at anytime.
So, Does that mean A can sue me at any time after my employment with them? or there should be reasonable evidence or document required to file a law suit against someone.

And also, Is there any way an employer can find where his ex-employee is working, Like getting the court order to asking me to submit my latest pay stub or my current offer letter?

I have seen lot of posts where people discussed about their ex-employer came to know about the "breaking the non-compete contract".
But, Can someone please explain how the ex-employer found that or can find that info?


Thanks
Sridar

[hariswaminathan]

Any employer can order for employment verification record from 3rd party agency. Your current employment info will show up and since they have all the info about you (including SSN) its a breeze to pull this info.

Also - You are right that one can sue for no reason. In fact most employers sue just to bankrupt and stress out former employees just for revenge. The people with the deepest pockets usually win. You will never be able to last out the legal fees etc as an individual and that is the intention - eventually you may have a case to have it thrown out of court or win the defence - but would you be willing to last out 3 years of fees and headache ?

Check if your current contract has the word "indirectly" written in it. If not then you may be able to work some 3rd party angle for a temporary period with your prospective employer.
If you have an EAD handy you might want to look at 1099 contracting to your prospect (check if legal with Immigration lawyer) so you show up in the system as self employed.

Sorry i cant be of more help - but these are the facts as i see them



Guys,
My situation is more common, but i have couple of odd questions....

A --> B (Vendor ) --> C (End client)

A is my current H1 holder, with whom i signed non-compete agreement.

End client, c is interested in hiring me. I am also interested. But i told C about non-compete. So, C talked to A for H1 transfer but he is not agreeing for that (even for monetary compensation). But, B is ok with H1 transfer.


So,

1) If i quit my current employer, A. and join C. How will "A" know that i actually broke the contract. Please note that there are no other teams or colleague working for C from A.

2) Will it be possible for my consultant, A to sue me by assuming that i joined C, without any basis or evidence.

3) What if i joined different company D (for 6 months as a bridge company) and come back to C. Can, A, still sue me at random times with out any supporting documents or evidence?


When i looked at net, i found one can sue anybody at anytime.
So, Does that mean A can sue me at any time after my employment with them? or there should be reasonable evidence or document required to file a law suit against someone.

And also, Is there any way an employer can find where his ex-employee is working, Like getting the court order to asking me to submit my latest pay stub or my current offer letter?

I have seen lot of posts where people discussed about their ex-employer came to know about the "breaking the non-compete contract".
But, Can someone please explain how the ex-employer found that or can find that info?


Thanks
Sridar

[patiently_waiting]

Please be careful if the Employer (A) is from NJ-NY area.

they are very greedy in that area. They will go upto any extent. it happened for my friend.

[metis11]

Thanks for the clarification....


"In fact most employers sue just to bankrupt and stress out former employees just for revenge. The people with the deepest pockets usually win."

If i am not wrong with my interpretation, the above sentence meant, the employer always having the upper hand even though i join a "different" company.

Meaning, its always the employee responsibility to prove that he doesn't break the contract by appearing in the court, etc...

[hariswaminathan]

Yes you are right with your interpretation. BTW i speak from experience on this matter. I have been through hell so please be careful.

Thanks for the clarification....


"In fact most employers sue just to bankrupt and stress out former employees just for revenge. The people with the deepest pockets usually win."

If i am not wrong with my interpretation, the above sentence meant, the employer always having the upper hand even though i join a "different" company.

Meaning, its always the employee responsibility to prove that he doesn't break the contract by appearing in the court, etc...

[thomachan72]

Guys,
My situation is more common, but i have couple of odd questions....

A --> B (Vendor ) --> C (End client)

A is my current H1 holder, with whom i signed non-compete agreement.

End client, c is interested in hiring me. I am also interested. But i told C about non-compete. So, C talked to A for H1 transfer but he is not agreeing for that (even for monetary compensation). But, B is ok with H1 transfer.


So,

1) If i quit my current employer, A. and join C. How will "A" know that i actually broke the contract. Please note that there are no other teams or colleague working for C from A.

2) Will it be possible for my consultant, A to sue me by assuming that i joined C, without any basis or evidence.

3) What if i joined different company D (for 6 months as a bridge company) and come back to C. Can, A, still sue me at random times with out any supporting documents or evidence?


When i looked at net, i found one can sue anybody at anytime.
So, Does that mean A can sue me at any time after my employment with them? or there should be reasonable evidence or document required to file a law suit against someone.

And also, Is there any way an employer can find where his ex-employee is working, Like getting the court order to asking me to submit my latest pay stub or my current offer letter?

I have seen lot of posts where people discussed about their ex-employer came to know about the "breaking the non-compete contract".
But, Can someone please explain how the ex-employer found that or can find that info?


Thanks
Sridar
this seems completely ridiculous to me. It seems like you are a slave and are not working at will?? What prevents you from chosing an employer of your will? You are not supposed to start a business and attract clients that would compete with your current employer that is what is called non-compete, right? or am I wrong? your company's clients are already in business and it is very common for employees to shift between companies. If the client (I am asuming is also a company) is willing to hire you what prevents you from joining them? What is the basis of your present employer's lawsuit against you?? that you left the company and joined a client?? Wow that makes no sense. Check with an attorney if you really have doubts about non-compet agreement.

[thomachan72]

I am sorry about my previous post. I think you are right. on googling I saw that several companies have non compete agreements signed saying that you will not work for a competitior for 2 years after leaving. I was not aware of such an agreement before. Consult an attorney before jumping because as others said your employer is likely one of those greedy trouble makers.

[frostrated]

check your non-compete clauses. many times it will state that you cannot work for your company's clients. Your company's client is B and not C. Therefore, there is nothing stopping you from joining C. Also, a non-compete does not prevent you from joining C as the US law prohibits contracts that restricts gainful employment. So, you are free to join whomever you want to join.

[sands_14]

I do have a non-compete as well with a company A.
I work with Employer C(client) through B(vendor) through A(employer).
Can I join vendor D as an employee and still work with client C? or Can I join as self-employed,work with vendor D and on clinet C's site?

[gc_check]

It depends on the Non-compete clause /agreement you had signed with the employer and also depends on any clause the companies have between them, when agreeing for corp-corp. Usually the companies sourcing a resource will include a clause that would help them retain a resource if need be. In my case, I did not have a middle layer, Was working for a company A, who is also a vendor for my current employer. I did had a non-compete, saying I would not accept employment with a competitor or with their client / business partner for 6 months after leaving for any reason, but my contract with the current employer and the vendor, had a clause, that they could hire the contractor after 6 months of contract for same position. So when I got hired by my current employer, even though I had non-complete, I got a waiver and was able to join. I did not tell my previous employer that I am leaving, rather went through the report manger to request the vendor to hire me and this worked for me. Though I joined for a different position, the current manager helped me by having the then reporting manager to hire first and then transfer to the current group.

I would talk to the all parties involved and work this out in a good easy way, so we do not end with any problem at a later stage. Talk to your manager / HR of the current company and try to convince them and let them know, if any other contracting positions opens up, you might be able to get more business, etc..

[looneytunezez]

Non-Compete contracts fall under the purview of contract law.
For eg: in CA, non-compete is not enforceable except under some conditions....
Most non-compete contracts in CA, even though signed, are void.

Every state defines what type of agreement is allowable and what is not?

I would recommend consult an employment lawyer in your state.

This is not to say that, the employer A for you, might not take you to court out of spite.

HTH,

LT

[indyanguy]

A friend of mine had signed a non compete (with an American company) that prevented him from taking up another job in the SAME CITY!!! He had to move out of there after he quit.

So yes, there can be all kinds of clauses in the non compete.

[psaxena]

Its simple and I did this in the past and can be done and its legal

A--->B---->C client

You have a non compete from A ----> B , that means you cannot join the B , till the 6 months of the termination of the employment with A. But no where in contract it will ever say that you cannot join C. C is out of the non compete agreement.

Trust me bro seen and done it without any issues. Even if A comes to know that you joined C he just cannot do anything, also if there is anything in $$$ mentioned in the non compete, feel free to join even B as $$$ amount mentioned in non compete makes the whole agreement nothing, I was told by the attorney at a large pharmaceutical company.

I was in the same situation my employer A sub contracted me to vendor B which further sub contracted me to Client. Now when client wanted to hire me then I came to know that my employer don't have anything to prove that I am contract to client C thru him, as he a work order from B and not C.

Moreover if you are in CA just go ahead and non compete are not valid in CA.



Guys,
My situation is more common, but i have couple of odd questions....

A --> B (Vendor ) --> C (End client)

A is my current H1 holder, with whom i signed non-compete agreement.

End client, c is interested in hiring me. I am also interested. But i told C about non-compete. So, C talked to A for H1 transfer but he is not agreeing for that (even for monetary compensation). But, B is ok with H1 transfer.


So,

1) If i quit my current employer, A. and join C. How will "A" know that i actually broke the contract. Please note that there are no other teams or colleague working for C from A.

2) Will it be possible for my consultant, A to sue me by assuming that i joined C, without any basis or evidence.

3) What if i joined different company D (for 6 months as a bridge company) and come back to C. Can, A, still sue me at random times with out any supporting documents or evidence?


When i looked at net, i found one can sue anybody at anytime.
So, Does that mean A can sue me at any time after my employment with them? or there should be reasonable evidence or document required to file a law suit against someone.

And also, Is there any way an employer can find where his ex-employee is working, Like getting the court order to asking me to submit my latest pay stub or my current offer letter?

I have seen lot of posts where people discussed about their ex-employer came to know about the "breaking the non-compete contract".
But, Can someone please explain how the ex-employer found that or can find that info?


Thanks
Sridar

[WantGCQuick]

If you have sent client's time sheet to the employer A, that would count right?..
He can say that you are joining a competing company?

[gconmymind]

I work in California on a contract and my company is in Chicago. I have a non-compete that I cannot join the client. Client wants to hire me and my company has given the HR a verbal commitment that they will allow them to hire me. There is no middle-layer involved.

Am I good? Is verbal assurance from my employer binding? Is the non-compete still binding after my company has agreed to the client request?