Non compete contractor (non employee) situation

I have been working as a 1099 contractor for a guy (company "A") who has placed me as a contractor via another company (copmany "B") to a big firm (Company "C"). Company "C" allows contractors from only from certain preferrred companies and company "A" is not on the preferred list, where as company "B" is.

I do have a non-compete signed with company "A". Who is my non compete with? company "B" or company "C". Can I find another company "D" that is also preffered for company "C" and go with them instead?

Also, I do get my payments after 90 days or so from company "A" whereas company "C" pays within days to company "B", can this be use as a reason to nullify the contract I have with company "A"? Are there any rules for contractors to get payments within a certain timeline?

Also, company "A" has not invested any $ on me as I do my own work - company "A" is just collecting money and keeping their portion [they never gave me any info, no knowledge, no training, nothing]


1 answer  |  asked Jun 12, 2006 1:54 PM [EST]  |  applies to Arizona

Answers (1)

Francis Fanning
Complex relationship creates complex questions

I cannot answer your question regarding the application of your non-compete agreement without reviewing the agreement. Its wording will determine how and to whom it applies. Having said that, my guess is that the non-compete was written to protect company "A"'s interest, which means keeping you from going directly to company "B" or another placement agency. That's just a guess.
As far as your pay is concerned, company "A" is your employer. Employers are required to pay employees at least twice per month, and are allowed to hold back no more than five days of pay (this is to give the employer a week to complete its payroll accounting). Overtime must be calculated and paid within 15 days of when it is earned. If company "A" is an out of state company whose payroll is processed out of state, paydays may be once a month instead of twice. From what you have described, your employer is not complying with these requirements, which are found in Ariz. Rev. Stats. 23-351.

posted by Francis Fanning  |  Jun 12, 2006 3:45 PM [EST]

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