IT sub-contractor ,unknown contract, noncompete?

I signed as a consultant for CT company (A) to work for another contractor (B) for a NY State agency (C)in Aug 2000. I had a non-compete with company A, and company A told me that B had clause to hire me within a year. After the 911, Company B told me that if I did not sign on as permanent employee, then my contract will expire at end of the year (2002). I declined the offer. On my last day, my supervisor stated not to leave and report the next day. I did not sign a new contract with company A for company B. I was approached by another agency for company C regarding a new position different from what company B does. My supervisor's (from company B) co-worker called my former agency (A) and stated I was in violation stating they have a contract but based on my old duties. Can I work for company C?

1 answer  |  asked Mar 3, 2003 8:34 PM [EST]  |  applies to New York

Answers (1)

David M. Lira
Getting Locked In

Your query is a good example of a fact pattern where it would be dangerous for me to give a specific answer. One danger is that I don't know enough. Another danger is that, if I responded to your question with a simple "yes," that does not mean that A and B could not cause you trouble, up to an including suing you.

Incidentally, your fact situation seems to be one which is an inherently good argument against these non-competes. "A" seems to be locking you in, more or less dictating to you who you must work for. Once "B" has you, they will probably want another non-compete from you. You sound more like an indentured servant than an employee.

To provide a general response, NY Courts disfavor non-competes. As a result, if push came to shove, a court would likely find that A and B have no right to prevent you from working for C.

posted by David M. Lira  |  Mar 4, 2003 08:41 AM [EST]

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