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I signed a service agreement with Non Compete clause with my current employer XYZ.

Jersey City, NJ |

This agreement also says that I MUST work for XYZ for atleast 1 year. I just stepped into the US and found a client where XYZ would place me. Verbally they committed that they will give 80% of per hour rate to me and keep 20% for themselves but now after getting the project they say it would be 70% and 30%. Can I do anything about it?

Secondly they filed an LCA which mentions my salary as 60000 which is way lesser than what I will be getting on the rate sharing basis. They will disburse the salary monthly and will first give only $5000 i.e. the salary mentioned on my LCA and later will give rest of the salary.

Please let me know if I can change the employer and will I have to face legal challenges in doing so keeping in mind that I signed a service agreement saying that I will work 1 yr

Attorney Answers 4

Posted

I am not an immigration attorney and I am not an employment attorney. As a general rule non-compete agreements, especially with "leased employee" firms or "headhunters, are enforceable if reasonable as to time. No one can force you to work for a company. That could prove to be a form of slavery, but not allowing you to work for this particular third party (I suspect you are actually an employee of the company with which you have a non-compete agreement, and are placed at another company to perform specific tasks.

You could possibly work for a different company, but one needs to look at the type of work you do, what you were supposed to do, and what the "non-compete" agreement actually provides. For instance, if you were hired to do computer programming, but did not like this placement company, and decided to become a foreman for a warehouse, there could be only a claim for reimbursement of any money paid t bring you into the US. If you went to do computer programming for a nother company, the placement company might be entitled to some form of fee, but it could not prohibit you from working there if the company did not compete with the first company you were originally hired to service.

The foregoing is not intended to be legal advice upon which you may rely as I have not been retained for this purpose.

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Posted

This looks like an exploitative scheme that is unfortunately not too uncommon. No attorney can tell you with certainty whether or not XYZ will seek to enforce the non-compete/employment agreement. However, you can greatly maximize your chances of avoiding legal complications if you seek advice from an experienced employment attorney and take action, such as for example negotiate with your employer, based on a clear understanding of your legal rights.

I am licensed to practice law in NJ and NY. My response here is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. To get specific legal advice please contact an attorney within your jurisdiction.

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Posted

Welcome to employment agency hell where abuse of foreign workers is rampant. Go talk to a local NJ employment law attorney, and bring all your documents. You may be getting out of this contract due to fraud and a possible violation of the 13th Amendment. Or move to California where noncompetes are not enforced.

This is not legal advice but only general information. No attorney-client relationship is created without a written and signed retainer. I do not know all the facts of your specific situation, which will affect this general post. You can get more information at my websites: http://kindsvater.com http://internetmarketinglawcenter.com

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Posted

I'm immediately concerned by a non-compete that requires you to provide a term of employment; even if that promise is reciprocal, it smacks of indentured servitude (or as Mr. Bearg aptly puts it, "slavery.")

I'm more concerned at the bait-and-switch tactics regarding your compensation. You should immediately speak with an experience labor attorney regarding these issues (and any others which may crop up.)

As far as the non-compete goes, they are only enforceable to the extent the clause is reasonable. While XYZ probably can't prevent you from quitting your job and getting employment elsewhere, they may be able to prevent you from working with another recruiting agency in the same industry (or similar industry) and certainly prevent you from working for the same third party...at least without getting their cut. You also may have a work visa issue.

The foregoing is not legal advice, and nothing in the foregoing shall be deemed to create an attorney client relationship. If you feel you need to speak with an attorney regarding your issue, it is recommended that you contact an attorney with expertise in your area of inquiry. The information related above is purely for informational purposes, and should not be acted upon without speaking with qualified counsel familiar with you specific situation and the laws related thereto.

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