Need clarity on Employment agreement

[ardent_guy]

Jurisdiction

Michigan

Hi,

I work as a temporary resource for clients and am paid by the staffing firm which charges an hourly rate from the client. The client is likely to have positions open in the near future for which they may consider me for permanent employment. During on boarding with the staffing firm, one of the documents I signed has the below clause - I would appreciate if you could shed some light on what this clause entails, i.e.,

a. Can I accept permanent employment with the client?
b. Can I serve the client as an independent contractor immediately after resigning from the staffing firm?
c. What denotes 'information technology services'? I do not work in the IT field, so would this apply if i were in Finance?

Limitation on Employment with Clients. Employee agrees to immediately inform Employer if Employee receives an offer of employment from a client. Employee also agrees to keep all of client's consulting, employment or staffing needs confidential and to bring such needs only to the attention of Employer. Employee agrees as a condition of this agreement and the assignment of Employee to client that Employee will not solicit or accept an offer of employment with or otherwise directly or indirectly, on a full-time, part-time or temporary basis provide information technology services to client or its affiliates until the expiration of twelve months after the termination of this agreement.

Please advise.

Thanks,
ardent_guy



Also wanted to add that, I did not sign any agreement to work for the staffing firm for any specified amount of time.

 

[army judge]

Limitation on Employment with Clients. Employee agrees to immediately inform Employer if Employee receives an offer of employment from a client. Employee also agrees to keep all of client's consulting, employment or staffing needs confidential and to bring such needs only to the attention of Employer. Employee agrees as a condition of this agreement and the assignment of Employee to client that Employee will not solicit or accept an offer of employment with or otherwise directly or indirectly, on a full-time, part-time or temporary basis provide information technology services to client or its affiliates until the expiration of twelve months after the termination of this agreement.

Please advise.

The words are very clear.

There is no hidden meaning.

If you find the wording to be UNCLEAR, I suggest you speak with someone at the staffing agency and ask for an interpretation.

Before you do that, however, I suggest you reread the document and ask specific questions on what BAFFLES or BEFUDDLES you.

 

[PayrollHRGuy]

What do you do now and what do you want to do as an employee of the client?

 

[adjusterjack]

a. Can I accept permanent employment with the client?

Not until 12 months after you quit working through the agency.

b. Can I serve the client as an independent contractor immediately after resigning from the staffing firm?

Not until 12 months after you quit working through the agency.

c. What denotes 'information technology services'? I do not work in the IT field, so would this apply if i were in Finance?

Good question. "information technology services" could be one of those things that is in the eye of the beholder. Disputing the definition is likely to get you sued and your financial future will be trashed.

My advice: If the client wants to hire you, the client should be the one getting that handled with the agency.

Otherwise, never talk employment with the client while you are working there and don't approach the client about employment for 12 months after you quit the agency.

 

[hrforme]

usually the client would be able to pay the agency some type of fee to buy you out of that agreement. But it could be expensive.

 

[ardent_guy]

Thank you all!

What do you do now and what do you want to do as an employee of the client?

I support Accounting & Finance functions for the client, there could be new positions, similar to my current role for which the client may consider me on a full time basis given they liked my work and know my potential.

 

[Zigner]

Thank you all!


I support Accounting & Finance functions for the client, there could be new positions, similar to my current role for which the client may consider me on a full time basis given they liked my work and know my potential.

Do you use a computer and its related software as a part of your normal duties?

 

[PayrollHRGuy]

Zigner beat me to the question.

If by "support" you mean hold their pens while they work you aren't IT. If you touch a computer when you support them the staffing firm is going to consider you IT.

The employer likely also has an agreement with the client that they won't hire assigned employees during a given period if at all. That is why you are required by that agreement to notify them if they are offered a position.

I've been involved in staffing for about 20 years. Here is how it works in the real world.

If they offer you a job before whatever restriction period is the staffing company will contact the client and remind them of the agreement. They may offer the client a buy-out. Completely depending on the staffing company, client and the market situation if the client refuses they will either really push the issue and sue the client, simply roll over and let you go, or something in between.

In 2 out of 3 of those cases, the client (would-be employer) will likely decide you are more trouble than you are worth and not hire you and in all 3 there is a very good chance the staffing company won't place you again.