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Hi,
I have a query with regards to H1-B Transfer; I am working in Sacramento CA. And i have signed a employment agreement on July 2014, with my H1-B sponsor (employer) that has Non-Compete and Non-Solicitation clause, which states that I cannot seek employment to preferred vendor/client introduced by the employer. If I breach this they would sue me for liquidated damages. Employer is new jersey based.
Could you please advise me does this signed agreement holds true in state of California and am I liable for liquidated damages. I have the opportunity to join the End Client and preferred vendor as a full time employee.
Here is the exact text of Article 5 of the agreement.
Non-Competition and Non-Solicitation
5.01 Non-Competition: Employee agrees that during the term of this agreement and a period of one (1) year following the termination of the Employee' employment or one (1) year following the termination date of this agreement whichever is later the employee shall not directly or indirectly on behalf of any individual or entity, be employed by the any Company client, vendor, broker, end-client, end-user or any entity introduced to the employee by company or any entity that employee provided services solicit, accept or diver any employment, business, computer consulting contracts or make any contacts with any client, vendor, end-client, end-user or otherwise take away from the Company any business the Company had or was actively soliciting during the Employees employment. This paragraph shall survive the termination or expiration of this agreement.
5.02 Non-Solicitation: The employee agrees that during Employee's employment with the company and for one (1) year thereafter the Employee will not directly or indirectly solicit the employment, consulting or other services of any other employee of the Company, or a client, end-client or end-user of the company, or of an entity at which the Employee was placed or introduced as a result of this/her employment with the company, or induce any such employees to leave such employment or to breach an employment agreement there with.
Employee will during Employees employment with the Company and for one year thereafter shall not directly or indirectly in any capacity induce or allow or attempt to induce or allow any company employee, consultant, contractor or other party to terminate his or her employment or contractual relationship with the company. The employee agrees that the employee shall not solicit, divert or accept any contractual or business relationship with any former present or future landlord, employee consultant, client, end-client, end-user, customer, vendor broker or contractor of the company or any entity which either directly or indirectly provided any business to the company. This paragraph shall survive the termination or expiration of this Agreement.
5.03 Remedies: In the event of a breach of article 5.01 and/or 5.02 the employee agrees that the company will be irreparably harmed entitling the company to injunctive relief, in addition to any monetary damages. Employee consents to the entry of an injunction in the event of a breach of this provision prohibiting a continued breach.
5.04 Liquidated Damages. Employee agrees if employee breaches article 5.01 and/or 5.02 employee shall pay liquidated damages in the amount of Thirty Thousand dollars.
Thanks
I have a query with regards to H1-B Transfer; I am working in Sacramento CA. And i have signed a employment agreement on July 2014, with my H1-B sponsor (employer) that has Non-Compete and Non-Solicitation clause, which states that I cannot seek employment to preferred vendor/client introduced by the employer. If I breach this they would sue me for liquidated damages. Employer is new jersey based.
Could you please advise me does this signed agreement holds true in state of California and am I liable for liquidated damages. I have the opportunity to join the End Client and preferred vendor as a full time employee.
Here is the exact text of Article 5 of the agreement.
Non-Competition and Non-Solicitation
5.01 Non-Competition: Employee agrees that during the term of this agreement and a period of one (1) year following the termination of the Employee' employment or one (1) year following the termination date of this agreement whichever is later the employee shall not directly or indirectly on behalf of any individual or entity, be employed by the any Company client, vendor, broker, end-client, end-user or any entity introduced to the employee by company or any entity that employee provided services solicit, accept or diver any employment, business, computer consulting contracts or make any contacts with any client, vendor, end-client, end-user or otherwise take away from the Company any business the Company had or was actively soliciting during the Employees employment. This paragraph shall survive the termination or expiration of this agreement.
5.02 Non-Solicitation: The employee agrees that during Employee's employment with the company and for one (1) year thereafter the Employee will not directly or indirectly solicit the employment, consulting or other services of any other employee of the Company, or a client, end-client or end-user of the company, or of an entity at which the Employee was placed or introduced as a result of this/her employment with the company, or induce any such employees to leave such employment or to breach an employment agreement there with.
Employee will during Employees employment with the Company and for one year thereafter shall not directly or indirectly in any capacity induce or allow or attempt to induce or allow any company employee, consultant, contractor or other party to terminate his or her employment or contractual relationship with the company. The employee agrees that the employee shall not solicit, divert or accept any contractual or business relationship with any former present or future landlord, employee consultant, client, end-client, end-user, customer, vendor broker or contractor of the company or any entity which either directly or indirectly provided any business to the company. This paragraph shall survive the termination or expiration of this Agreement.
5.03 Remedies: In the event of a breach of article 5.01 and/or 5.02 the employee agrees that the company will be irreparably harmed entitling the company to injunctive relief, in addition to any monetary damages. Employee consents to the entry of an injunction in the event of a breach of this provision prohibiting a continued breach.
5.04 Liquidated Damages. Employee agrees if employee breaches article 5.01 and/or 5.02 employee shall pay liquidated damages in the amount of Thirty Thousand dollars.
Thanks
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