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restrictive covenant

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gina9631

Junior Member
What is the name of your state (only U.S. law)? Ohio

Recently I got a job offer from a staffing company. I will be working as a contractor for their client. In their employment agreement, there's a restrictive covenant as follows:

" In consideration of the terms of employment and the efforts and costs incurred by ####(Staffing company name), you agree you shall not engage in a like or similar profession or occupation at client's facility or any other facility at which you are directed to or actually perform services under this Agreement, either directly or indirectly, for a period of 180 days following the termination of your employment under the terms of this Agreement, unless specific written authorization has been obtained from ###(Staffing company name). You agree any violation of this provision will result in you paying to ####(Staffing company name) an amount equal to ### hours at the hourly rate as stated above.

I'm not sure if I read this correctly, but my understanding is, No matter this assignment with this staffing company's client is ended naturally or not, I can not

1.take any similar job directly from their client as
2. work as a contractor in a similar position for another staffing company
3.work in a similar position for any other company.

If anyonehas experience with this, please advise. Thank you very much
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Ohio

Recently I got a job offer from a staffing company. I will be working as a contractor for their client. In their employment agreement, there's a restrictive covenant as follows:

" In consideration of the terms of employment and the efforts and costs incurred by ####(Staffing company name), you agree you shall not engage in a like or similar profession or occupation at client's facility or any other facility at which you are directed to or actually perform services under this Agreement, either directly or indirectly, for a period of 180 days following the termination of your employment under the terms of this Agreement, unless specific written authorization has been obtained from ###(Staffing company name). You agree any violation of this provision will result in you paying to ####(Staffing company name) an amount equal to ### hours at the hourly rate as stated above.

I'm not sure if I read this correctly, but my understanding is, No matter this assignment with this staffing company's client is ended naturally or not, I can not

1.take any similar job directly from their client as
2. work as a contractor in a similar position for another staffing company
3.work in a similar position for any other company.

If anyonehas experience with this, please advise. Thank you very much

That appears to be what it says, but I can pretty much guarantee that its not enforceable. Item number 1 is standard and normal. There is a procedure where a company can hire you on directly but they have to pay a certain fee to the staffing company.

Number two is more questionable. They don't want you quitting them, going to another staffing agency, and then taking the a job right back with the original company, therefore cutting them out of the loop. However, I absolutely do not see it being enforceable that you can't take a job with another staffing agency and get a similar job at a different company.

Number three is the one that I am pretty certain is totally unenforceable.
 

gina9631

Junior Member
That appears to be what it says, but I can pretty much guarantee that its not enforceable. Item number 1 is standard and normal. There is a procedure where a company can hire you on directly but they have to pay a certain fee to the staffing company.

Number two is more questionable. They don't want you quitting them, going to another staffing agency, and then taking the a job right back with the original company, therefore cutting them out of the loop. However, I absolutely do not see it being enforceable that you can't take a job with another staffing agency and get a similar job at a different company.

Number three is the one that I am pretty certain is totally unenforceable.


Hi LdiJ, Thank you very much for your answer :D I want to make sure that I can still work for other company in a similar occupation before I take this job. Thanks!
 

Zigner

Senior Member, Non-Attorney
Hi LdiJ, Thank you very much for your answer :D I want to make sure that I can still work for other company in a similar occupation before I take this job. Thanks!

I would suggest that you have a short sit-down with a local employment law attorney for a full review of your agreement.
 

LdiJ

Senior Member
I would suggest that you have a short sit-down with a local employment law attorney for a full review of your agreement.

While that would be a very good idea, I suspect that someone who needs to hire on with a staffing/temp agency probably doesn't have the money to have the agreement reviewed by an attorney.

I think its pretty safe to say that number three could never hold up in court.
 

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