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Violating the non compete agreement

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  • Violating the non compete agreement

    The company which holds my H1 is company A and is based in CA. I came to US in June 08 and stayed in NJ with my relatives. Company A did not do any marketing for me. Finally I managed to land a job in east coast with company C through its direct vendor company B. Company A and Company B have a corp to corp agreement. During the intial four months company A did not pay me. They paid my flight ticket and gave me $500 for expenses. It has been more than a year working in my current project. I asked Company A for a raise which he denied saying that the Company was not doing. Later I got a rate increase from Company B, after that I asked Company A to give me a hike. To this also he did not agree. After fighting with him for months he agreed to pay me quartely bonus. But they said that will not increse my salary on my salary slip. As I had done the rate negotiations with Company B, I know that my employer is passing me peanuts and keeping the major chunk for himself. My project is slated to run through end of next year. I want to transfer my H1 to some other company but continue working with Company C through Company B. I even had a talk with Company B and they have no problem if I transfer my H1 to Company X. They are ready to do a corp to corp agreement with them. I have a non-compete agreement in my offer letter which states:
    During the course of (unless otherwise directed by and done on behalf of company A) and for the one (1) year period following the termination of your employment with company A, you agree not to directly or indirectly (i) solicit the business of or become employed by any customer or third party entity with whom you had been placed on behalf of company A, and (ii) solicit for employment any person(s) employed by company A. You agree that company A will be entitled to injunctive relief as well as damages for any violation by you of this paragraph and that this provision is reasonable and necessary for company A‘s protection due to your exposure to company A‘s confidential and proprietary information and trade secrets.
    I want to know if I transfer my h1 toCompany X, will Company A sue me? What are the other options that I have. In my offer letter Company A had mentioned that they will start paying me only after I start working on a pjt. I feel that he is harassing me staying on the fine legal line. Please advise me on how to go about it.

  • #2
    Non competes are very much valid the the court. If you want to join B, you are out of luck if you signed a non compete.

    The other issues you mention are immaterial when it comes to non compete. Those have to be taken up with the Wage and Hour division of DOL if there is any violation of the H1b law.

    I am not a lawyer and you need to consult with one to validate any info posted on the forum and discuss your case specifics. H1b Question? Read the FAQ first.

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    • #3
      I am not planning to join Employer B, but I want to get my H1 transfer to Company X and then still work with Company C through Company B.

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      • #4
        A well worded non-compete can cover the entire chain including the end client. A better option would be to find another client and another employer.

        I am not a lawyer and you need to consult with one to validate any info posted on the forum and discuss your case specifics. H1b Question? Read the FAQ first.

        Comment

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