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  1. #1
    Join Date
    May 2018
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    Default Is an Agreement Restricting Hiring a Former Employer's Contractors Binding

    My question involves labor and employment law for the state of: Missouri.
    I signed an agreement with a previous employers that I would not "hire" their independent contractors for one year after I left. Is this a clause that would hold up under legal scrutiny? I understand not hiring their employees, but can they restrict the contracting of ICs?

  2. #2
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    Oct 2016
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    Default Re: Validity of Agreement Regarding Hiring

    Because the clause is in no way restricting YOUR employment there is no reason to think that it wouldn't stand up in court.

  3. #3
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    Feb 2008
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    Default Re: Validity of Agreement Regarding Hiring

    agree...but without seeing the whole agreement, we don't know. I suggest taking the full agreement to a local attorney for review. (and it could be the ICs also have agreements that prohibit it)

  4. #4
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    May 2018
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    Default Re: Validity of Agreement Regarding Hiring

    Thanks for the comments. The ICs do not have agreements that prohibit it. They can hold multiple contracts within the same industry. Would the former company endanger their treating ICs as employees if they attempted to restrict an IC from contracting with another company? I know the lines are blurry, but I am familiar with several companies who use the IC model but routinely violate the provisions of it. Some have been caught.

  5. #5
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    Oct 2016
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    Default Re: Validity of Agreement Regarding Hiring

    Yes they would. They may be able to restrict an IC from a specific company but not all like companies.

    I know several as well both those that have been caught and those that haven't.

  6. #6
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    Default Re: Validity of Agreement Regarding Hiring

    Although granted not in your state, I have seen such an agreement not only considered legally binding, but was in fact ordered by the court.

  7. #7
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    Default Re: Validity of Agreement Regarding Hiring

    Quote Quoting cbg
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    Although granted not in your state, I have seen such an agreement not only considered legally binding, but was in fact ordered by the court.
    Do you remember any of the circumstances surrounding that? I am having a hard time thinking of reasons why someone would want to restrict ICs from working for someone who used to be employed by their company. They wouldn't be protecting trade secrets or customer lists because the former employee would already know those. I cannot even see poaching being an issue since the ICs already work for multiple companies who are going to be competing for the best of the best. Therefore I honestly curious about what reason there might be.

  8. #8
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    Default Re: Validity of Agreement Regarding Hiring

    Employer A had been unwise enough to put, in writing, that he was deliberately trying to lure Employer B's workers away from him with the express purpose of putting employer B out of business. Employer B sued and won; the court rules that the two employers could not hire anyone who had worked for the other one in the last year, and the order was for, I believe, 18 months. After that, either of them could try to hire anyone they chose to and good luck to them. But for that one year and a half, Employer A could not hire anyone who had worked for Employer B in the past year, and vice versa.

  9. #9
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    Oct 2006
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    16,474

    Default Re: Validity of Agreement Regarding Hiring

    Quote Quoting cbg
    View Post
    Employer A had been unwise enough to put, in writing, that he was deliberately trying to lure Employer B's workers away from him with the express purpose of putting employer B out of business. Employer B sued and won; the court rules that the two employers could not hire anyone who had worked for the other one in the last year, and the order was for, I believe, 18 months. After that, either of them could try to hire anyone they chose to and good luck to them. But for that one year and a half, Employer A could not hire anyone who had worked for Employer B in the past year, and vice versa.
    Thank you, that makes perfect sense. Employer A was pretty stupid.

  10. #10
    Join Date
    Jun 2006
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    Massachusetts
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    Default Re: Validity of Agreement Regarding Hiring

    He was, and to make matters worse, Employer B was one of the nicest guys and one of the best bosses I ever had. But he wasn't about to sit still and let his business be ruined, either.

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