Need Advice: Release from Contract Training/Employment

[neptunejaguar]

In October 2015, I entered into a training contract with company Z. The contract was to receive 9 months of IT training. The contract does not have an End Date on it; if it’s signed in October then 9 months from there would be July 1, 2016. The training cost is $8,000 which I don’t have to pay for as long as I work for them for free during that time which is not stated in the contract. But I do have it recorded on audio that I’m working to pay off the training which will eliminate the cost for the training.

February 2016, Company Z put me on a contract to work for the State of Arizona part-time on a temp job for 5 months. The way it works is the State of AZ pays company Z; Company Z gets 55% and then Company Z then pay me 45%. My contract for the State of AZ ends at the end of July 1, 2016.

The state job wants to hire me again but I have to get a Letter of Release from current Company Z before they hire me. They don’t think it is right that Company Z is taking 55% from me. The state job wants to pay me more but without Company Z. Company Z does not want to give me a Letter of Release because they lose money.

Company Z says they have invested thousands into my training to further my career. Which they didn’t; come to find out my training would have cost about $2200 plus it was all self-study on my time and yet they get over 55% of my rate and I practically work for Company Z for free 7 hrs. a day. If I were to get paid for the work I do for Company Z, even at minimum wage, I would have paid off my training in the first three months.

If my contract with Company Z doesn’t have an end date, but duration is 9 months which will make June my last month, do I really need a Letter of Release? If Company Z does not want to give me one, how do I get one? The state will not hire me without one.

 

[ShyCat]

U.S. law only.

 

[cbg]

When you showed the contract to an attorney in your state, what did he say?

 

[neptunejaguar]

I have not received a response yet.

Here are more details if anything is confusing.

Company Z is providing the IT training that complements my current skills in IT. The training is not instructor led as I thought in the beginning. The training ended up being self study through videos and online exercises and just doing my own research (which I probably could have been doing at home).

I’m not actually paying for the training, the agreement was that they train me and in turn I just work for them (Company Z) to ‘pay off’ the training. That part was an oral agreement; I have that conversation recorded. The training is for 9 months. Training started on October 1, 2015, which would make July 1st, 2016 the 9 months which in turn would make June 30th, 2016 the last day of the 9 months.

During the course of the training, since Company Z, in essence is a consulting, provides IT services and part staffing agency, they found a client, State of AZ agency (SoAZ) that had the requirements of my skill set. Just so happens that my SoAZ contract also end June 30th.

SoAZ pays Company Z, then Company Z pays me.
SoAZ wants to contract me again in July under a different staffing agency, RS. So it’ll be a new contract under RS. SoAZ pays RS a lower rate than what Company Z is getting. I get 90% of the pay rate if I go under RS.

I intend to finish both my training agreement with Company Z up to June 30th and my contract for SoAZ to June 30th.

If I wanted to use RS instead of Company Z to get a better pay rate and a lower rate for SoAZ to pay,SoAZ and RS needs a Letter of Release that my contract is complete for Company Z on June 30th.

I never signed a termed agreement that I chose Company Z to find me jobs and establish a pay rate as a staffing agency. The agreement signed was the training/work exchange.

I don’t see a buyout clause in the contract between myself, Company Z and SoAZ.

 

[cbg]

Neither do I. That's because I can't read it from here.

That's why you need to show it to an attorney in your state, who can.

 

[STEPHAN]

U.S. law only.

State of Arizona

That should answer it.