Agency Legal Contracts

  1. Hello,

    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!
  2. Visit Revvy1337 profile page

    About Revvy1337

    Joined: Jan '11; Posts: 31; Likes: 14
    Licensed Practical Nurse; from US
    Specialty: Long Term Care, Dementia, Neuro-Psychiat


  3. by   Meriwhen
    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.
  4. by   JustBeachyNurse
    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.
  5. by   caliotter3
    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
  6. by   amoLucia
    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.
  7. by   missymis86
    amoLucia do companies often "buy out" a nurse? I'm in a similar situation, I work agency and would like to work for a hospital that I have already been oriented on. Do you know anything about this or who I should talk to first? Agency or hospital? any advice?
  8. by   NedRN
    Talk to the hospital first. They will tell you if they can hire you or not.
  9. by   missymis86
    Ok great! I think there is some sort of buy out but the hospital wouldn't have to orient me or anything.. So they'd be saving money in that sense. I think they can hire me it's just dependent on the buy out cost. How much are buy outs usually?
  10. by   NedRN
    25% of first year's salary is standard but is usually negotiated down. Depending on the agency's relationship to the hospital, even if there is a non compete, they may waive it. None of your direct business, just ask the hospital if they can hire you. If they cannot or will not, simply go travel somewhere else 6 months or a year until the non compete expires.
  11. by   Attuma0000
    I am currently in the process of working for an agency and going full time. There were a few of us that are transitioning from agency to permanent. What happens is you usually have to extend your contract at least one time. After that, the hospital has the option of offering you a position. The key is, however, that you must wait until you are in your second contract in order to apply and they can not "officially" offer you to "apply" for permanent until you are in your extention. Just be sure to ask the hospital first. NOT THE AGENCY FIRST!! They want you to stay working for them so depending on your relationship with your recruiter, you may get misleading information. The hospital, if interested in you knows exactly how they can bring you on staff. Most have a clause written in their contract with the agency that allows them that option. Let me know if you have more questions. You can as so message me if you want. As I said I am going through this rite now so my info is fresh lol. Hope this helps!!
  12. by   missymis86
    Hey Attuma0000 I tried to send you a private message and it said your inbox is full and can't receive messages at this time?
  13. by   Attuma0000
    Sorry try again

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