There have been posts from frustrated employees of temp agencies / employment agencies questioning Non-Compete clauses.
Example: Joe gets a job thru Happy Temp, LLC. They hire him to work for Big Corp. Joe loves Big Corp, and Big Corp loves Joe. Big Corp wants Joe to come to work for them permanently. It's a match made in heaven.
However, Happy Temp says Big Corp has to buy Joe from them.
Joe is upset and wonders how that's fair. He wonders if he can get out of the non-compete agreement he signed when he was hired by Happy Temp.
Here's the skinny: The binding agreement here is not about the agreement between Happy Temp and Joe. It's between Happy Temp and Big Corp. When Big Corp goes through Happy Temp to get employees, they sign an agreement. It basically says that Big Corp won't come in and cherry pick Happy Temp's employees without hiring them for a minimum time or paying the fee agreed upon.
Happy Temp advertises, finds employees, screens them, and goes through a whole process to find workers.
Big Corp, not wanting to go through the hassle, and wanting to "Try before they buy" employees, goes through Happy Temp to get screened, tested and prepped employees. If they don't like them, they send them back - no fuss, no muss. If they do like them, they get a chance to hire them permanently.
The way Happy Temp makes back its money is by charging Big Corp more than it is paying Joe. If Big Corp wants to hire Joe permanently, they have to pay Happy Temp for their trouble, or continue to hire Joe for whatever the minimum period is expected by the agreement between them and Happy Temp.
It's not up to Joe to decide if it's fair, or if Happy Temp is charging Big Corp too much, or anything else. He got the job at Big Corp through Happy Temp, and Happy Temp has a right to be compensated for making that match.
I run a small temp agency, and you bed your bullocks if one of the companies to which I provide employees tried to hire them out from under me we'd be in a legal battle. I take a lot of liability and responsibility to send someone to a company. I have overhead, and insurance, and all kinds of outgo, and I need to make a living. It's not all about you, Joe. You need to suck it up or go get a different job on your own without the help of an employment agency.
As a disclaimer: Non-Compete agreements are treated differently in different states, based on different criteria.
Example: Joe gets a job thru Happy Temp, LLC. They hire him to work for Big Corp. Joe loves Big Corp, and Big Corp loves Joe. Big Corp wants Joe to come to work for them permanently. It's a match made in heaven.
However, Happy Temp says Big Corp has to buy Joe from them.
Joe is upset and wonders how that's fair. He wonders if he can get out of the non-compete agreement he signed when he was hired by Happy Temp.
Here's the skinny: The binding agreement here is not about the agreement between Happy Temp and Joe. It's between Happy Temp and Big Corp. When Big Corp goes through Happy Temp to get employees, they sign an agreement. It basically says that Big Corp won't come in and cherry pick Happy Temp's employees without hiring them for a minimum time or paying the fee agreed upon.
Happy Temp advertises, finds employees, screens them, and goes through a whole process to find workers.
Big Corp, not wanting to go through the hassle, and wanting to "Try before they buy" employees, goes through Happy Temp to get screened, tested and prepped employees. If they don't like them, they send them back - no fuss, no muss. If they do like them, they get a chance to hire them permanently.
The way Happy Temp makes back its money is by charging Big Corp more than it is paying Joe. If Big Corp wants to hire Joe permanently, they have to pay Happy Temp for their trouble, or continue to hire Joe for whatever the minimum period is expected by the agreement between them and Happy Temp.
It's not up to Joe to decide if it's fair, or if Happy Temp is charging Big Corp too much, or anything else. He got the job at Big Corp through Happy Temp, and Happy Temp has a right to be compensated for making that match.
I run a small temp agency, and you bed your bullocks if one of the companies to which I provide employees tried to hire them out from under me we'd be in a legal battle. I take a lot of liability and responsibility to send someone to a company. I have overhead, and insurance, and all kinds of outgo, and I need to make a living. It's not all about you, Joe. You need to suck it up or go get a different job on your own without the help of an employment agency.
As a disclaimer: Non-Compete agreements are treated differently in different states, based on different criteria.