No-hire provision; not a non-compete situation.

Hello, I have read through many of your Non-compete questions, but my question is a bit different.I have been working for a Contract Research Organization in the pharmaceutical industrey for about a year. We work on-site at our client location. Recently I accepted a position with the client, and provided my current employer with about 4 weeks notice. I have been made aware that there is a contract between my employer and the client which states that the client must provide two months notice if they hire an employee from the CRO, however I did not sign this contract- as I understand it, it is between the client & the CRO - basically the rights of the individual are not considered. The employment contract that I signed when I started states that I must give two weeks notice or I forfeit any PTO payout. I am due to start at my new job in two weeks, but today my supervisor "informed" me that my last day is in fact two months away, despite the notice I provided. How can such a contract exist which basically treats an employee like some piece of equipment? I would appreciate any insight you can provide. Thank you very much.

1 answer  |  asked Feb 12, 2008 4:55 PM [EST]  |  applies to Pennsylvania

Answers (1)

Christopher Ezold
The client-employer no-hire contract limits the rights of the client, not you.

Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.

That being said, a client-employer no-hire contract limits the rights of the client, not you. This means that the client may not hire any employee of your employer in violation of the agreement, but that you may choose to leave your employer's employment for the next two months, and have no obligation to work for them. The problem is, even though you can leave, the client cannot hire you until the two months are up, leaving you without a job for about six weeks.

In a nutshell, while this does affect you, the employee, the agreement between the client and your employer is not prohibited under the law. Pennsylvania is not a 'right-to-work' state; you don't have a right to work for either your employer or the client without a contract creating that right.

If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.

/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com

posted by Christopher Ezold  |  Feb 12, 2008 5:16 PM [EST]

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