QUESTION

Can employer sue me on joining same vendor on H1 for Non competition and Non Solicitation

Asked on Jul 25th, 2013 on Employment Contracts - New Jersey
More details to this question:
My employer got arrested on bribery charges and after that bailed out. Q. If i transfer my H1 to my vendor on same project same client can my employer sue me for any non compete agreement (below)? Here is the excerpt of non compete between him and me. After resigning till 1 year, no service to customers of company for which you provided services or were associated prior to leaving, you shall not accept employment from any direct or indirect clients of our company without prior written consent. you shall not work directly or indirectly with any customers of our company. if violated, you shall be liable to pay $5000 finder's fee to company. That the cost incurred on attorney/expert/lawyer and other incidental costs shall be borne by the defaulting party. That such cost shall be payable in addition to the damages. Please let me know, Thanks.
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1 ANSWER

Criminal Defense Attorney serving Toms River, NJ at Edward J. Dimon
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As an initial matter, you must obtain a new H1B status or the question regarding the non-compete is moot, since you may face immigration consequences if you lose status. It is fairly common to transfer H1B employers but the concept of an actual transfer is a misnomer. Essentially a new H1B and a new employer will have to make the request. The process can be time consuming and technical and it is advised you retain an immigration attorney for this process. Additional issues may arise if you fall out of status before your new H1B can be processed. As with your original H1B application, you will need a variety of documents to perform the necessary paperwork, including but not limited to the following: - 2 Recent paystubs - Copies of all your current H1B papers - Copies of all passport pages - Copy of I-94 form - Copy of most current visa stamp - Latest resume - Copy of diplomas and certificates - All prior W2 tax papers If here with family, you will also be required to redo their paperwork as well. Regarding your concerns over your non-compete, such agreements are only enforceable in New Jersey courts if it can be shown that (1) it protects the legitimate interests of the employer; (2) does not impose an undue hardship on the employee; and (3) it is not injurious to the public. Generally, it is not a legitimate interest of an employer to limit competition. There must be some form of customer relationships or trade secrets sought to be protected. Undue hardship is a fact sensitive issue that examines the geographic scope and length of time, against the employees other available oppurtunities. It is always harder to win this argument when an employee quits as opposed to being fired. The last prong discussing whether there is injury to the public is also fact sensitive. The type of service or business performed and the community need for that service are the most important factors. Because non-competes are so fact driven, it is recommended you schedule a visit with my firm so I can develope a more accurate answer. You can find my contact information from the firm website at www.cldds.com Should you have any other questions or concerns, our firm has attorneys who focus on civil, criminal, family, municipal, elder, commercial, and real estate law.
Answered on Jul 25th, 2013 at 3:38 PM

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