In CA, Is it legal to prohibit employee not to work for its client after quit in 2 yrs?

george_g_2008

The short answer is "probably yes" ... read the following and then read the blog that I have linked as a source. I do say "probably" only because there are some cases where the law limits what terms companies can put into such contracts (see the 2nd link), but generally what you are describing is not unusual at all. READ ON...

If you are a contractor then there should be a written contract (thus the term "contract-or") specifying the terms of your employment. Part of this contract MAY include a "non-compete clause" which basically is an agreement that you will not "bypass" your employer to find income that they would normally get by "renting you out" as a contractor.

OR... another way this may be happening is that the client will have signed a contract to get services from your company and THAT contract will have a non-compete type clause that basically prevents the CLIENT from "stealing" your company's employees (you), which again would result in a loss of income to your company.

One or both of these two types of contract clause is almost universally used around the world by every company that provides contractors to other companies (temp agencies, outsourcing firms, etc). Without such clauses they might as well give up being in business as all of their best employees would be "stolen" by their clients.

Most companies like this also have what is commonly called a "buyout clause" ... this allows a company that really likes you to pay a fee (often about 6 months salary, but this varies) to allow then to hire you now, avoiding the "waiting period" or "non-compete period" (which in your case seems to be about 2 years, again this varies by company and by contract).

If you are being told this by your employer then ask them to help you understand. Show them a clear photocopy (NOT the original) of your contract and ask them to show you where in the contract is the non-compete clause so you can read it. If you think its not right then ***quietly*** (don't tick off your employeer by threatening lawsuits) take your contract to a labor lawyer and ask "is this enforcable" and he will probably say yes.

If you are being told this by your client then they probably are unwilling to pay the large buyout fees. You will have to take their word for it that their "hands are tied" ... (if there is no such clause then they would be lying to you but would you really want to work for a company if they lied to you about this kind of thing). If they say they cannot hire you then more than likely there ***is*** a non-compete clause in their contract with your employer.

LetMeBe

What do you mean "in 2 years"....???? Do you mean FOR two years?

My guess is it doesn't sound like something that could get you in trouble if violated unless it was in some kind of written form and you signed in agreement or something. Were you fired? Did you sign an agreement/contract w/ this employer regarding this?

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