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LawTalk, Attorney
Category: California Employment Law
Satisfied Customers: 34882
Experience:  I have 30 years of experience in the practice of law, including employment law and discrimination law.
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I am hired by a contract group that has a contract with a hospital

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I am hired by a contract group that has a contract with a hospital in California. The hospital is breaking that contract. Can I then have a contract with that hospital so I can continue to work. The hospital will not hire me as an employee but will hire me as a contract company. so i would like to form a company that will contract with the hospital. I did sign a non- compete clause, but if the hospital is breaking the contract with that contract group am I ok legally to form a group.

Good morning John,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

As an employee with your present employer, any agreement that you may have signed with them agreeing not to compete against them is illegal and unenforceable in CA.

The law in CA is as follows:
BUSINESS AND PROFESSIONS CODE SECTION 16600. Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.

You are free to quit your job with your present employer and then start your own business and contract with the hospital if you want to. You are legally entitled to form your own group by forming your own business and contracting with whomever you want in the community. I wish you success!

You may reply back to me using the Continue the Conversation or Reply to Expert link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

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I wish you the best in 2013,


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Customer: replied 3 years ago.
What if I am still employed by contract group when I make a proposal to hospital. Say the contract has not been broken between hospital and employer. Would I be legally liable if hospital contracts with me. Or let's just say the hospital says they will negotiate with me before they actually break the contract. What are my legal ramifications of this senecio .
Good morning John,

While your employer could fire you for attempting to compete with them while still an employee---you can try to make a contract with the hospital if you want, it is no illegal.


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