Non compete and High Margins

Asked over 1 year ago - Piscataway, NJ

I used to do contract work for a company in NY thru an agency. I quit that job for a better paid contract in NJ. Now, I am unemployed from the past 2 months and my boss from my first company called me up and offered me another contract. Since I had a non-compete, I decided to go with my previous agency. But to my shock, they are asking for a $40 an hour margin and asking for me to sign a fresh non-complete contract for two years.

I tried negotiating but it is NOT working, any advise how I should handle this? I cannot contract directly to the end client and hence need to go thru an agency but this margin is just crazy.

Attorney answers (1)

  1. Christopher Edward Ezold


    Contributor Level 17


    Lawyer agrees

    Answered . I am an attorney licensed in the Commonwealth of Pennsylvania, and the States of Delaware and New Jersey. My practice includes employment, business and health care law. 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, Delaware, New Jersey or Federal law applies.

    That being said, you have your answer - it would be crazy to sign such a contract. Say no and walk away. Tell the end client (if not prohibited from doing so by contract) why you can't work with them. It might shake loose some concessions.

    /Christopher E. Ezold/

    The Ezold Law Firm, P.C.
    Employment, Business and Health Law
    One Belmont Avenue, Suite 501
    Bala Cynwyd, PA 19004
    (610) 660-5585

    I am an attorney licensed in the Commonwealth of Pennsylvania, and the States of Delaware and New Jersey. My... more
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