Breach of 1099 contract

[tparvaiz]

Hi,

I've hired a consultant (who's on H1 visa for some other company, let's call it H1 Company) on 1099 and through a preferred vendor placed it to a client xyz. so chain of contracts look like this

(H1 Company -> my company -> preferred vendor -> client xyz in California)
(H1 Consultant --1099---> my company)

(Note: I have one contract with the H1 Company and second one with H1 Consultant, 1099)

The preferred vendor has sent me a notice, informing that he is taking over my consultant, completely ignoring my consent. and apparently he has advised my consultant to stop time reporting for me.

--Here is a snip-it from the 1099 contract --

CONTRACTOR STATUS
a) Non-Solicitation: Contractor hereby agrees that for the duration of employment and twelve (12) months thereafter,the Contractor
ii. shall refrain from any solicitation of any existing customers or clients of the Computers Inc. , or those who were customers of Computers Inc. during the period of the Contractor’s employment by Computers Inc. and for 12 months after termination date.
----------

Can you please advise A) if this is allowed and legal, B) what options do I have

Thanks in advance

 

[FlyingRon]

Unless you have your own H1B authorization for this employee it is ILLEGAL for you to employ him. This is entirely separate from the contractual issues you raise. You are publically stating you wish to commit a criminal act. I seriously suggest you get REAL legal assistance from an attorney before you do anything further.

i can't tell from your post who "contractor" is in the alleged contract. I suggest you take all that to an attorney as well. My guess is that the contract isn't binding on you at all, but it may bind the person who you intend to do business with and he is certainly entitled to be concerned. He should seek legal advice as well.

Finally, I've got GRAVE concerns that the entity you entitle "H1B Company" is acting properly either. The H1B process is not supposed to be used for a company to bodyshop out immigrants to other companies.

It looks like every party involved in your scenario is likely to run afoul of the law on some aspect of this.