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Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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I currently work in California as a consultant-W-2 employee

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I currently work in California as a consultant-W-2 employee for company A for the past 13+ years. Company A has a consulting contract with Company B in New Jersey and Company B has a contract with Company C in California. I actually work as a consultant and show up to work at company C for the past 11+ years.

I want to quit company A and start my own company (xyz Inc.) and take the contract directly from company C.

I have spoken with company C, and they do not have any problem transferring the contract to my own company. They like my work and have agreed to transfer the contract to any company I work for.

My question is, will company B or A will come after me, if I start a new company and take company C as my client. If they file a law suit, do they have a base or will it stick? I want a legal opinion in this regards. Is there is another way to do this or get around this issue.
Submitted: 6 years ago.
Category: Business Law
Expert:  Ellen replied 6 years ago.

I am an attorney with 25+ years of legal experience and am working diligently on your answer while I await your response.

Please tell me:
Do you work exclusively in California?
Do you have a contract with a stated term of service?

Customer: replied 6 years ago.

I work exclusively in California.

I personally do not have any contract other than an employee contract with company A.

But I believe company A to comp B to Comp C has general Information Technology related services contract. I basically provide IT related services such as programing and administration of Databases to Company C.

The contracts are between Comp A---> B---> C. and I am just a consultant working for company A.


Expert:  Ellen replied 6 years ago.
Does your contract with Company A have a stated duration
Customer: replied 6 years ago.
No, I do not have any stated duration with company A. I work as an normal employee and I believe I can quit with a 15 or 30 day notice to company A.
Expert:  Ellen replied 6 years ago.
It does not appear that Company A or Company B would have a viable cause of action against you. You have no contractual restriction prohibiting your direct employment with Company C. You also have no contractual period of time that you have agreed to render services to Company A. In addition the courts in California are very reluctant to restrict competition in employment.
Customer: replied 6 years ago.

Even company B which has contract with company C, will not have any problem. If I in simple words taking away their contract from C to my own new company.


Expert:  Ellen replied 6 years ago.
I am confident that neither Company A or B will be pleased that you are taking away their business with C. However absent a contract restricting you from working for C - which likely would not even be upheld in California- I do not see a cause of action
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