Legal Question in Employment Law in California

I work to company "A" as a consultant. Company "B" is a client of company "A". After a year of me consulting this client, company "B" decided they want to hire me full time. Company "A" says that they have an item in their contract with company "B" saying that if such a situation were to arise, company "B" would have to pay a fee of 50% of my first year's salary at company "B" to company "A". Is this legal in California?


Asked on 2/01/10, 6:47 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Who cares? It's not your problem. Company B already said they want to hire you. Presumably they already know about the contract with Company A, and they are either ready to pay off Company A, or else litigate with them. Congratulations, and when you go to Company B say hi to the boogie-woogie bugle boy for me.

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Answered on 2/06/10, 10:56 pm
Terry A. Nelson Nelson & Lawless

Of course, and it is quite normal in 'consultant' arrangements between companies. It is how companies protect themselves from 'raiding' of employees.

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Answered on 2/08/10, 10:03 am


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