Agency Legal Contracts

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    I've been told by Maxim's recruiter/schedulers that I cannot apply to work (aka employed)at a facility that I've worked at under Maxim for one whole year, is this true, and is this legal? I have been working at such and such a hospital, I like it, and in fact I'm orientating other nurses because I work full-time there a lot. Is it legal for me to quit Maxim and work there? I can't possibly think its legal to enforce such a contract just because if I work at Meijers grocery store they can't also say its illegal to work at Kroger grocery store just because they deal with food!
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  3. 4 Comments so far...

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    That is actually a common restriction with a lot of agencies, as a way of protecting their investment in you. The agency would lose money on you if you jumped ship to take a position at the facility (you wouldn't be working for the agency anymore), so in your employment agreement with the agency, you promise not to work for the facility for a year after your last assignment there; if you do go to work for them sooner that that, then Maxim would be entitled to monetary compensation. I think it's called a non-compete clause.

    My agency has a similar clause: if I violated it, would have to give them 25% of my salary at the new facility. This is no problem for me as I don't want to be a permanent employee of the site I get sent to

    You would not be breaking any law if you decided to quit Maxim and work for this hospital directly. Also, Maxim can NOT prevent you from earning a livelihood. However, Maxim may decide to go after you in court to enforce this restriction and collect that money.

    If you're serious about leaving Maxim for this hospital, you should have an attorney look over the agreement you signed with Maxim. You may also want to keep that lawyer handy should Maxim threaten you with legal proceedings. And that's all I can tell you as we can't give legal advice.

    Good luck.
    poppycat likes this.
  5. 1
    One year might be considered an excessive restriction for a staff position. You would have to consult with an employment attorney in your state. One company I worked for 1 year non compete was legal for any level employee but not in my state. 1 year for upper admin, 6 months for senior level staff and 3-6 months for general level staff. They had to issue revised agreements once challenged by a former employment to comply with my state's employment regulations.

    Unless your assignment is a temp to perm (facility has the opportunity to hire you either before or at the end of your assignment written in their contract). I worked a temp to perm, I was hired permanently after 4 weeks of a 12 week contract with no penalty to me. I have no idea what the company paid to alter the contract.

    But yes it is legal (generally) and common for companies to have non-compete agreements for field staff as a condition of employment.
    poppycat likes this.
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    Common. However, most agencies will have the new employee sign a statement upon hire that stipulates the consequences: $2500 (typical amount) fine for both employee and hiring employer. Consultation with an employment attorney would be wise.
    Last edit by caliotter3 on Nov 5, '13
    Meriwhen likes this.
  7. 1
    It's been a while but I remember that it used to be possible for a facility to 'buy out' a contract for an agency nurse if that facility wanted to hire the nurse directly. The agency nurse was already experienced and familiar with the facility, so no greatly prolonged orientation period was necessary.

    It was usually a win-win situation for the staffing agency, the hiring LTC, and the nurse.
    BARNgirl likes this.