Transferring contractor's from one agency to another?

The company that I currently work for is submitting a RFP for a State Contract, and in the RFP the state wants to know how we will handle the contractors that currently work through other Staffing Agencies because these are valuable employees that the state would like to keep. Most if not all of these contractors have non-compete agreements with their current agency employer's. If our company is awarded the contract, is it possible to transfer these contractor's onto our payroll? If not what is the best solution in this matter?

1 answer  |  asked Jun 30, 2003 12:00 PM [EST]  |  applies to Texas

Answers (1)

Margaret A. Harris
Transferring Individuals to Another Company

Do not delay in getting the legal advice of an attorney who knows about non-compete agreements. You could wind up in litigation (very expensive) for years if you do not handle this correctly from the outset. The other "Staffing Agencies" to which you make reference no doubt care very much that their employees/contract workers (there may be a legal question of whether those folks are really independent contractors) honor their written agreements about not going to work for the competitors. Surely you would feel offended if some other entity tried to take away all the folks on which your business success depends? If so, you know how the current "Staffing Agencies" are likely to react. They could very well decide to sue you. Although the agreements in question may or may not be valid, you will likely spend more money in defending against a lawsuit than in getting competent advice and dealing with the problem up front.

posted by Margaret A. Harris  |  Jul 1, 2003 10:39 AM [EST]

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