Employement agareement will cause issue?

[Scorpiodude]

Hi,

I am working with company A for last 1.2 years on H1B without issue. Before coming to the US, they asked me to sign the employment agreement, which I did. The agreement had following major claus which I want to discuss.

1. If I leave the company A withing 1 years, I will have to pay specified amount as damage. If I leave the company A between 1 year to 1.5 year, then I will pay less amount.

2. Non-solicitation of customers: "Employee agrees that during the term of this agreement and for (1) year following the termination of the agreement, with the company for any reason, he/she shall not directly or indirectly, solicit the trade of, or trade with, customer(s) of the company introduced or worked for under this agreement in competetion with the company."

I have till now worked on one project with following chain.

my employer (A)->subcontractor(B)->Big 3 consulting company(C)->client

Currently I am out of project (less than a month, paid).

Now there is a good consulting company (D) which wants to hire me for a project and wants me to transfer the H1 to them. Incidently, the consulting company (D) wants me to work with same client where I worked with company (A).

I am ok with my current employer's agreement clause 1 and may ready to pay for it. But I am worried about the non-solicitation of customers clause. Can somebody please advise me whether the language of the clause is binding for me not to work for same client even though employer is not related???? What is the best thing to do during these times???

Also, there is no damage amount mentioned for breaking this clause. How much it can be? My current employer is based in PA.

Will this clause create issue in H1 transfer to company D?

Thanks for your help!!

[txh1b]

Non competes are very well enforceable in the US.

[Scorpiodude]

employment agreement

Thanks txh1b for reply...

Do employers enforce this in most cases?

I heard that if agreement was signed before coming to US, and while I was in India, it is not valid. Is that true?

Also, what is the time limit these enforcement can be done after I start working for the new company? And how damage amount/penalty is computed if there no damage amount written in the agreement?

Thanks for your help...

[txh1b]

It all depends on the employer. If they wish to sue, they could. But, in this economy, the judge may be lil accommodating if that happens. Consult a labor law attorney.

[Scorpiodude]

employment agreement

Thanks txh1b for reply...

One more thing, doe this NCA clause seems binding to keep from working with the end-client? There was a big chain between my employer and the end-client.

my employer (A)->subcontractor(B)->Big 3 consulting company(C)->Client(Z)

"Employee agrees that during the term of this agreement and for (1) year following the termination of the agreement, with the company for any reason, he/she shall not directly or indirectly, solicit the trade of, or trade with, customer(s) of the company introduced or worked for under this agreement in competetion with the company."

Thanks for help...

[txh1b]

It covers all sub-contractors and end-clients from what I see.