Can a company stop me from working with a company that contracts with them?

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Can a company stop me from working with a company that contracts with them?

I was contracted under my own DBA to deliver and install appliances into new homes. I also had to supply/hire my own employees to do these jobs. The requirements for the employees that we had was they needed to pass a background check and drugscreen through them to work for us. i recently had my contract pulled and no longer have my business with them. I have 4 friends that do the same thing with that company and offered to hire me to work for them so I can make a living. Even though I am completely legal under their guidelines the are telling my friends that I cannot work for them for fear of losing their contracts with them. This company has several former contractors that was terminated that are currently working under somebody else there but I’m being blackballed basically. Is this legal and do I have any recourse for this problem. Also, I would like to add that this decision is not from the owners but from personal issues from a manager.

Asked on February 24, 2012 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, this is legal. The law does not guaranty anyone work or business, or require a given company to work with, even indirectly, any particular person--in short, a company may "blackball" a person by not permitting that person to work with or do business with it in any way, shape or form. It may enforce this by not working with anyone who hires or employs you, since it does not need to work with them, either. It does not matter that the issue stems from a personal issue with a manager--since the company does not have to work with you, it can refrain from doing so for any reason.

The only caveat is that the terms of any contracts must be enforced; therefore, depending on what your friends' contracts say, the company may not be able to summarily cut them off.

Note that nothing stops you from contacting the owners, explaining the situation to them, and seeing if they will overrule this manager or take other action.


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