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  1. #1
    Join Date
    Apr 2010
    Posts
    3

    Default Independent Contractor Wants to Work Directly for Client's Former Customer

    My question involves independent contractors in the state of: New jersey/ny

    the contract referred to is under new jersey jurisdiction although we live in ny and client in ny. the contract is between an agency that subcontracted work to our business. the client that they subcontracted work with approached us saying that they are terminating the contract with the agency and want to go direct. This was being done with cause (a kickback was being given to someone at the client's office by the agency). However, the client does not want to tell the agency that. At the same time, they now want to start a direct relationship with one of our employees who was working for the client before.

    The work being done by that employee was covered by a scope of project that did simultaneously end with the agency termination. The new work would be an entirely different project in an entirely different department of the client.

    We are concerned that the agency who has standard language in contract regarding working for the client will have a problem with us and feel very put in the middle of this situation. We had no problem with the agency, however if the agency did commit the egregious behavior being described by the client, it is inexcusable and should not be a reason for our business to not be able to do business with the client. However, given the situation where the client will not give cause to the agency in terminating the relationship, how do we protect our business if we have a legal problem with the agency.

    Our company did not solicit the new business. Our company has been solicited by the client to continue working for them.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Sticky Contract Situation

    You are controlled by your contract. If your contract limits your business with the client, you are bound by it regardless what the issue is between the agency and the client. Even if there was just cause to terminate the contract between the client and the agency, it does not affect your contract with the agency.

  3. #3
    Join Date
    Apr 2010
    Posts
    3

    Default Re: Sticky Contract Situation

    The title you gave this is inaccurate. Independent consultant wants to continue to work under agency contract or at least wants client who is forcing the change to get the agency to release the contractor - this change was never our choice. I guess it is the same result. Let's say we wanted to try to get some sort of compromise - any suggestions of how to approach the agency and what we need from them to ultimately be released from the contract?

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Sticky Contract Situation

    Independent consultant wants to continue to work under agency contract or at least wants client who is forcing the change to get the agency to release the contractor - this change was never our choice
    as I said; the contract you need to be concerned with is your contract with the agency. If that doesn't restrict you from working directly for a prior client, then you are good to go.

    As to the contract between the agency and the client; that is out of your hands. If that contract restricts the client from hiring a person supplied by the agency, then one would presume they will attempt to enforce that contract.

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