jones new employee contract

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newandconfused's picture
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I was just hired on with jones about 6 months ago and now I want out but I have that contract hanging over my head. If I leave and don't have any client book to take with me, will they still come after me for training costs and the rest of the 75000 that I signed the contract for? What would happened if I get fired for lack of performance rather than leave voluntarily?

kerho's picture
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No because it would violate labor laws.  They roll the $75k into the non-compete clause (which by the way is also very difficult to enforce for them for an employee).
This is where the "right to work" laws are from.  As an employee, you have to right to work and the right to walk.  An employer cannot say "we spent $15,000 training him on how to run a press and he left, he now owes us $15,000"  Even if you have the employee sign for a uniform, you cannot withhold their check and have to have a signed document to withhold their pay for the uniform. 
You need to find out how much a "book" is worth (real $$$$ at the handover/transfer) not opinions, actual signed contracts transfering over the books before factoring that into your decision making process.  I've been valuing my business for years and get the same response from all business valuation experts:
1-1.5x net + real property + goodwill/non compete
Up to 5-10x net + real property + goodwill if you have no participation in the business.
Just selling clients? 10-20% of yearly revenue.  Who's going to give somebody $250,000 for a book when the seller can turn around and resolicite the clients?  Guess what? now you have to come up with the cash to sue him LOL  Better question:  What bank is going to give you a loan for $250k+ when they KNOW the guy can just get the clients back and you're left with nothing?  How about sell the book to 5 different people at the same time and run with the money?
If you paid $250k for a book, couldn't you just spend 250k on advertising and get the same asset? or far less?  You can give people $1000's just to transfer into your company and still be ahead.
 

Broker7's picture
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Confused,
Did you already have your 7 before EDJ? Are you 6 months from your can sell date? Are you producing (yellow/green)? The 75K does not decrease (by $9375) until the end of month 15.  What are your plans if you quit/get fired?

Broker7's picture
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kerho,
Are you kidding? do you even know what is in the EDJ contract?
$75K training
1 year non-soliciate.....different from noncompete.
 
And yes, they will come after you.

troll's picture
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It will depend on what you leave to do.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
If you leave to go sell investments some place else, they'll come after you for their money. BTW, anybody who is looking to hire you ought to know that this is the case, if they don't then you are probably popping out of the cake at a prison bachelor party!
If you are going to go sell cars... well, they don't have much of a leg to stand on there.
If they fire you for non production, don't forget that that will follow you the rest of your career on your U4.
I don't know how long they will hang it over you vis a vis staying out of the business. They might not chase you if you are out for say a year, or they might come after you if you ask them to transfer your license 1 year and 364 days after you left. That I do not know.
Meanwhile "I was just hired on" makes it sound like you were drafted. You chose to go to work for Jones. You applied and they hired you.
I'm no fan of Jones, I think they have a business model that is the stoopidest in the industry. BUT, if you really want to be in this business, I'd tell you to suck it up and stick it out and MAKE it work.
There are things you can do, ask your RL for a list of all the accounts that went someplace else and call on them... Call another Jones office and see if you can work out a deal with the guy's b or c book (everybody has clients they don't want to talk to, even Jonesers) you'll split the revenue or you'll trade him hot leads that are too complex for you to handle right now... Spend all your time buttering up all of the local accountants, (a little touchy right now, but after tax season) Go see all of the area lawyers... Talk to all the preachermans for 100 miles around and tell them that you'd love to talk to their parishioners about charitable giving (not to mention that trust business is like gravy on the biscuits to lawyers, so he has a reason to direct you bidness if you send some his way)!
What's nice about Jones' adverts is that it put's in the mind of the centers of influence that they don't have to worry about you blowing up a client (it's wrong, but that's besides the point, perception is the reality). Use that to your advantage.
I don't know, I just feel sorry for these Jones guys. Not since Nero threw the Christians to the lions (keeping with the Lenten theme) have I seen so much "meat" thrown at the wall in hopes that some will stick! It's unconscionable. Either don't hire the guys because they don't have what it takes, or hire them and help them grow. House them in a central office with a collection of other amateurs and let them build a business before you land an office on top of them!
Jones ought to be sanctioned by the NASD and the Labor Dept for their actions! If you go get a job at an office and you aren't a superstar, you stay a peon, but you haven't destroyed your family in the mean time! How much debt do you think the average Jones (and probably the other firms too) didn'tmakeit runs up while flailing and failing (and then there is the onerous training costs hanging over you)? At the end, he has $20,000 on credit cards @ 35% interest, and no job! 

 

newandconfused's picture
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i understand what you say about the book valuation but I haven't even been there long enough to build a book. So they hold my license for 2 years? I thought when I left they just released it or let it expire or whatever.

Broker7's picture
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Confused,
We understand you dont have a book.  Stop listening to Kerko..he hasn't been there, he hasn't done that.  Your license will expire 2 years after you quit/fired and stay out of the industry. But if you take another position that requires your 7, then you will get the nice bill from EDJ. So if you answer the questions in my previous post, maybe I can help

kerho's picture
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Broker7 wrote:
kerho,
Are you kidding? do you even know what is in the EDJ contract?
$75K training
1 year non-soliciate.....different from noncompete.
 
And yes, they will come after you.

 
The specifics of the contract don't matter, the law is clear:  You cannot hold the employee responsible for the money a business spends on training them, period. 
People have to remember this is not a business to business contract, it is an employer to employee contract and employees in this country have mountains of laws protecting them.
However, as an employer you can have whatever you want in an employment agreement as long as there is no DIRECT VIOLATION OF THE LAW.  Saying you have to give your uniforms back upon employment termination isn't illegal, withholding money from an employees check, holding the employee's check, or in any way holding them responsible for paying for the uniforms (outside of sueing them and/or without prior consent) is illegal.  Follow me so far?
The most money EJ can take from you is the amount of your last paycheck, if that is stated in the employment agreement AND you agree to it.  This $75k number is nothing, it might as well say $1.50 or $50,000,000 because they can do NOTHING to collect that money.
Ok next step.  So what action can they take?  Sue for breech of contact?  Nope can't do that, illegal, it's an EMPLOYMENT CONTRACT subject to the pletheora of labor laws.  Covanent not to compete?  It's our only shot.
Only problem, courts are changing the way they are looking at non-compete clauses (common law).  Court's position is a person has a right to make a living and merely teaching the skills to do a job, then continuing to do a job some place else isn't hurting the company since it's commonplace today.  People switch jobs every 3 years on average.
So what gives this clause meat?  The threat of a lawsuit.  For you to even have a judge/arbitrator rule on this will cost a cool $25-35k for EACH SIDE.  Remember, no show at the hearing results in a default judgement for whoever shows up.
But also remember, it depends on the judge, he might rule in 5 seconds in favor of the plantiff because he has gas and wants to leave.  Welcome to our CIVIL court system!!  And if you go in front of an arbitrator there is NO APPEAL.
What about soliciting customers?  Really really really hard to prove for them.  As stated before, get a billboard and you can say the customers found you.
So what good is a non-compete clause?  It protects the company against:
1.  People who obtain the ENTIRE or near entire company customer list and sells the list
2.  People who know the inter workings of a business and leave to publish a book and profit off of the knowledge they learned at the company (not to make a living doing the job but only off the information they learned while working there)
3.  Protect company secrets
To put in other terms, EJ just fishes in the ocean, as most companies do.  Just because you teach somebody else to fish, and that person leaves and fishes himself AND throws his net next to yours is not damaging you, it's the ocean, it's big, get over it.
Also, judges look at it like:  If he/she knew so much about your company, why did he/she leave?  If the answer is "to PROFIT directly from knowledge he learned from the company" then they win.  If the answer is "because he/she thought the company sucked and merely got another job, or made another job doing what he did at the company" you win.   The company also has to show there is damage to the company because of your actions.
Here's the skinny, odds are on the employee everytime, problem is, the employee usually doesn't have much to bet.
I won't even mention non-solicitation clauses because they aren't worth the paper they're printed on, if they can't win on non-compete they won't have a prayer on the non-solicit.

kerho's picture
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Broker7 wrote:
Confused,
We understand you dont have a book.  Stop listening to Kerko..he hasn't been there, he hasn't done that.  Your license will expire 2 years after you quit/fired and stay out of the industry. But if you take another position that requires your 7, then you will get the nice bill from EDJ. So if you answer the questions in my previous post, maybe I can help

I can send you a bill for $1,000,000, doesn't mean squat.

Indyone's picture
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uh oh...
OH BILL!!! MR. SINGER!!!  PAGING BILL SINGER!!!

Philo Kvetch's picture
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kerho, have you ever heard of a TRO?

Rest assured that the Edward Jones attorneys have.

newandconfused's picture
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broker, didn't have 7 before jones, not producing much at all which is why I think they might be looking at firing me and I want a backup plan. And I will probably have to find another industry altogether but would like to have the option to go to another firm if they will accept me considering I've been fired for lack of performance. lemme know

newandconfused's picture
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omg this is so confusing...what's a TRO

kerho's picture
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I also want to add that this is only about Employer to Employee contacts, it's got nothing to do with business to business contracts.  That's a whole different ballgame.  Most of the horror stories we've all heard are business to business (franchising!!!!) where labor laws don't apply.  If this was a franchise, they can take everything you own and everything you will own. 

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Philo Kvetch wrote:kerho, have you ever heard of a TRO? Rest assured that the Edward Jones attorneys have.
I'm not familiar with the term, nor do I claim to be an attorney or anything close.  I'm just telling him what I know from going through a similiar situation that was business to business. 

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Kerko,
Your ignorance is painful. You directing the poster of this thread in a blind manner.  You have no knowledge about this situation.
Do you or have you worked for Jones? Have you even seen the contract in question? Do you realize you sign a document stating you will be responsible for training expenses?(I will presume the answer is no by reading your previous posts)
Third, if the law is so clear, how then how has edward jones collected millions of dollars in training cost from brokers that left during the contract period/ violated the non-soliciate clause.  According to you, it is not possible by law.
Civil court??? It goes to the NASD arbitrator. (no appeal) Why don't you do a search on this forum before you post another reply.

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kerho wrote:
Philo Kvetch wrote:kerho, have you ever heard of a TRO? Rest assured that the Edward Jones attorneys have.
I'm not familiar with the term, nor do I claim to be an attorney or anything close.  I'm just telling him what I know from going through a similiar situation that was business to business. 

Right...your previous business to business situations do not apply here.  Your playing in a different ballpark.  step off.

Philo Kvetch's picture
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A TRO is a Temporary Restraining Order....effectively, a business killer to a
broker trying to make a move. It can keep a broker from plying his or her
trade until the matter can get be settled.

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newandconfused wrote:broker, didn't have 7 before jones, not producing much at all which is why I think they might be looking at firing me and I want a backup plan. And I will probably have to find another industry altogether but would like to have the option to go to another firm if they will accept me considering I've been fired for lack of performance. lemme know
Temporary Restraining Order.
OK...if jones fires you for lack or production, you will not be responsible for the 75K training costs (it is stated in the contract) But they will send you a certified letter to comply with the non soliciate.  And it is also highly unlikely that another firm would take you on without any production history or time in business. 

kerho's picture
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Broker7 wrote:
newandconfused wrote:broker, didn't have 7 before jones, not producing much at all which is why I think they might be looking at firing me and I want a backup plan. And I will probably have to find another industry altogether but would like to have the option to go to another firm if they will accept me considering I've been fired for lack of performance. lemme know
Temporary Restraining Order.
OK...if jones fires you for lack or production, you will not be responsible for the 75K training costs (it is stated in the contract) But they will send you a certified letter to comply with the non soliciate.  And it is also highly unlikely that another firm would take you on without any production history or time in business. 

All they can ask a judge to do is issue an injunction, and in employment matters, unless somebody is publishing their entire customer list or something as damaging as that, they won't get it. 
People have to remember, in employment contracts, the worst that can happen to an employee is to get fired.  MAYBE solitciting 100 out of 1,500,000 customers (or whatever) isn't doing enough damage to a company to warrant an injunction.  Granted, after they sue you they can shut you down if you have a business, but that's an entirely different matter.  Welcome to the wonderful world of self-employment, you ain't got NO protections lol.

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Kerho,
so have you made it to the EDJ face to face interview yet??

kerho's picture
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Broker7 wrote:
Kerko,
Your ignorance is painful. You directing the poster of this thread in a blind manner.  You have no knowledge about this situation.
Do you or have you worked for Jones? Have you even seen the contract in question? Do you realize you sign a document stating you will be responsible for training expenses?(I will presume the answer is no by reading your previous posts)
Third, if the law is so clear, how then how has edward jones collected millions of dollars in training cost from brokers that left during the contract period/ violated the non-soliciate clause.  According to you, it is not possible by law.
Civil court??? It goes to the NASD arbitrator. (no appeal) Why don't you do a search on this forum before you post another reply.

Hello?  did you listen to nothing I posted? LOL  I'll say it again:
It doesn't matter what EJ has in their employment contract, you can put anything in there, but it doesnt' mean it's ENFORCEABLE.  It is not a business to business to contract, it's COMPLETELY different than a normal contract.  A company, whether you have it in your contract or not, can not hold employees responsible for the cost of training them TO DO THEIR JOB.
Like I said, consult a lawyer, they'll say the same thing.  EJ is gonna lose, $30k to find out, settle for $25k to be done with it, $5k retainer to respond to their letter, have a nice day.
Now as far as retaining your license and continuing to practice, I can't answer to that but that wasn't the question.

kerho's picture
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Broker7 wrote:
Kerho,
so have you made it to the EDJ face to face interview yet??

What does that have to do with labor laws?

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I will ask you again....have you made it to your face to face interview with EDJ yet???

newandconfused's picture
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where do u work kerho?

kerho's picture
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I also want to add that since you are an employee, you are entitled to be paid at least minimum wage for every hour worked.  In Washington State, the minimum wage is $7.93 per hour.
Now, it doesn't matter what EJ or anyone on the planet says, you are entitled to that and they are in violation of the law if they do not pay you. 
If you work 70 hours per week for 4.33 weeks(monthly pay) you have to earn at least : $2403?  WRONG and here's what few people realize.
Nobody is exempt from overtime completely, nobody.  Some employees are exempt from some overtimes.  To simplify this we say, clerical, management, etc are exempt but here's the real deal:
You are only exempt from overtime if you fall into a clerical/management etc category AND your total salary (on average) exceeds minimum wage + overtime.  Let's take that same senerio and calculate how much you should really earn:
40 x $7.93 = $317.20 plus overtime of 30 x 1.5 x $7.93 = $356.85
$356.85 + $317.20 = $674.05 x 4.33 = $2918.63
Ok big deal, what does this mean?  Call the dept of labor, they'll tell you to record your hours, you do this for a couple months then ask for the appropriate amount of money from your employer.  The employer says no way, call the DOL and let them take over.  Quit because you were harrasses because of your DOL complaint, let the DOL handle all these NASD and EJ people lol.
You can easily rack up 100+ hours per week.  If you walk across town and talk and hand him a card then walk back, and it happens to take you 6 hours oh well, guess they should MANAGE THEIR EMPLOYEES BETTER.  yes, the exact words of a DOJ investigator to me about a bogus complaint.  If you make 2 phone calls per hour while sitting at home and you document them, you are working for the company.  If you wake up every hour and make 2 phone calls you are working for the company and are entitled to be paid for the entire hour.  The employer has to MANAGE their employees, they have to give them certain hours to work, certain things to do, etc.  If you just tell an employee "go for it" it DOES NOT REMOVE YOUR RESPONSIBILITIES AS AN EMPLOYER.  If you put no limits on how many hours an employee can work? then you leave the door open and are legally responsible for paying for all the hours the employee works.  How many hours in a week? I won't even mention paid breaks and lunch time and how much trouble you can get employers into for that LOL  Safety violations?  make a complaint to the DOL because you were not properly trained on how to cross the street.  Oh better yet, tell the DOL you had to climb ladders and you weren't given ladder training HAHAHA  #*%$& would hit the fan.  You just have to be at the ass end of it to really believe it, I been there too many times!
I don't believe most of these posts about EJ because I'm very adept at laws pertaining to employees (had them for over 10 years) and either they hire people who know nothing or somebody isn't telling the whole truth.

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newandconfused wrote:where do u work kerho?
I own a business but will depart soon.

kerho's picture
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Broker7 wrote:I will ask you again....have you made it to your face to face interview with EDJ yet???
No and I don't even know how far I will continue but I still don't see what this has to do with anything.  But I'm sure my face to face will be my face to his red face as he gets on his cell phone and have to find answers to questions he's never been asked before lol.
Oh and I'll never sign anything like this until I consult a lawyer.  Sorry, little to late, but I learned the hard way too.

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By the way, what company would NOT hire you if you were fired for making a complaint to the DOJ about not getting paid for 100 hours you put in per week? lol

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kerho wrote:
Broker7 wrote:I will ask you again....have you made it to your face to face interview with EDJ yet???
No and I don't even know how far I will continue but I still don't see what this has to do with anything.  But I'm sure my face to face will be my face to his red face as he gets on his cell phone and have to find answers to questions he's never been asked before lol.
Oh and I'll never sign anything like this until I consult a lawyer.  Sorry, little to late, but I learned the hard way too.

Kerho,
It has everything to do with this thread, because you don't and never have (or will) work for Jones.  You know nothing about E Jones or the contract in question.  You are not an FA, you are not an attorney.  So can I ask you a question...why are you giving misdirected and false advice to the poster of the thread??

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Broker7 wrote:kerho wrote:
Broker7 wrote:I will ask you again....have you made it to your face to face interview with EDJ yet???
No and I don't even know how far I will continue but I still don't see what this has to do with anything.  But I'm sure my face to face will be my face to his red face as he gets on his cell phone and have to find answers to questions he's never been asked before lol.
Oh and I'll never sign anything like this until I consult a lawyer.  Sorry, little to late, but I learned the hard way too.

Kerho,
It has everything to do with this thread, because you don't and never have (or will) work for Jones.  You know nothing about E Jones or the contract in question.  You are not an FA, you are not an attorney.  So can I ask you a question...why are you giving misdirected and false advice to the poster of the thread??

FA's don't know squat about labor laws and I don't see any attorney's here?

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Broker7 wrote:kerho wrote:
Broker7 wrote:I will ask you again....have you made it to your face to face interview with EDJ yet???
No and I don't even know how far I will continue but I still don't see what this has to do with anything.  But I'm sure my face to face will be my face to his red face as he gets on his cell phone and have to find answers to questions he's never been asked before lol.
Oh and I'll never sign anything like this until I consult a lawyer.  Sorry, little to late, but I learned the hard way too.

Kerho,
It has everything to do with this thread, because you don't and never have (or will) work for Jones.  You know nothing about E Jones or the contract in question.  You are not an FA, you are not an attorney.  So can I ask you a question...why are you giving misdirected and false advice to the poster of the thread??

You know I just thought, if EJ only hires people who know as much about labor laws and contract law as FA's here, no wonder they have so many people running around scared and collect so much money LOL

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If you are reading this and believing 1 word of what Kerho is saying then you need to search the old posts and read one of the hundreds of posts that contradict him.  Trust me, many attorneys have looked at the contract and found it to be enforceable. 
Getting your legal advice from anonymous posters is about as smart as using those junk faxes to find stocks to buy for your clients. 
Especially when those posters tell you to not worry, you don't have any liability.
 

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Generally I like working with small business owners, but occasionally you get one who thinks he knows everything about everything, including knowing more about your job than you do.
Kerho is giving me flashbacks to the worlds smartest plumber, who "educated" me for over an hour last month before I could steer him to the door.  He had the $$, but was way too high maintenance for me.

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EDJ4now wrote:
If you are reading this and believing 1 word of what Kerho is saying then you need to search the old posts and read one of the hundreds of posts that contradict him.  Trust me, many attorneys have looked at the contract and found it to be enforceable. 
Getting your legal advice from anonymous posters is about as smart as using those junk faxes to find stocks to buy for your clients. 
Especially when those posters tell you to not worry, you don't have any liability.
 

And I guess EJ's requirement isn't reading skills?  The ONLY piece of advice I have given him is to SEEK AN ATTORNEY.  I know big posts are really boring to read therefore skim the 1st five lines and make up the rest in your head.
I think you need to reread his post, he never spoke of staying in the biz, ONLY quitting EJ. 

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EDJ4now wrote:
Generally I like working with small business owners, but occasionally you get one who thinks he knows everything about everything, including knowing more about your job than you do.
Kerho is giving me flashbacks to the worlds smartest plumber, who "educated" me for over an hour last month before I could steer him to the door.  He had the $$, but was way too high maintenance for me.

What does knowing about contract law and labor laws (which I deal with everyday) have to do with selling securities? LOL  Like I said, brush up on your reading comprehension skills, it opens doors.

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Here's some links to begin your journey:
http://employment.findlaw.com/employment/employment-employee -hiring/employment-employee-hiring-contract(1).html
In terms of governing an employee's behavior after employment has ended, employment contracts can limit the ways in which an employee may use confidential or proprietary employer information, or restrict the employee's right to compete with the employer. Such non-competition agreements are particularly difficult to enforce, however, and many states have enacted statutes specifically limiting their effectiveness.  In general, the scope of such an agreement, whether the geographic area covered or the length of time that it lasts, must be no broader than necessary to protect the employer's business. 

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kerho wrote: Broker7 wrote:
newandconfused wrote:broker, didn't have 7 before jones, not
producing much at all which is why I think they might be looking at firing
me and I want a backup plan. And I will probably have to find another
industry altogether but would like to have the option to go to another
firm if they will accept me considering I've been fired for lack of
performance. lemme know
Temporary Restraining Order.
OK...if jones fires you for lack or production, you will not be
responsible for the 75K training costs (it is stated in the contract) But they
will send you a certified letter to comply with the non soliciate.  And it is
also highly unlikely that another firm would take you on without any
production history or time in business. 

All they can ask a judge to do is issue an injunction, and in
employment matters, unless somebody is publishing their entire
customer list or something as damaging as that, they won't get it. 
People have to remember, in employment contracts, the worst that can
happen to an employee is to get fired.  MAYBE solitciting 100 out of
1,500,000 customers (or whatever) isn't doing enough damage to a
company to warrant an injunction.  Granted, after they sue you they can
shut you down if you have a business, but that's an entirely different
matter.  Welcome to the wonderful world of self-employment, you ain't
got NO protections lol.

kerho, they not only can get TROs, they do get them with alarming
regularity.

As has been pointed out before, you're out of your depth on this so
please give it up. You're wrong.

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Kerho,
Please let us know how your phone interview went.  When is your face to face scheduled?  Please feel free to ask any questions as a company like Edward Jones would be privledged to have you on board.

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Philo Kvetch wrote: kerho wrote: Broker7 wrote:
newandconfused wrote:broker, didn't have 7 before jones, not producing much at all which is why I think they might be looking at firing me and I want a backup plan. And I will probably have to find another industry altogether but would like to have the option to go to another firm if they will accept me considering I've been fired for lack of performance. lemme know
Temporary Restraining Order.
OK...if jones fires you for lack or production, you will not be responsible for the 75K training costs (it is stated in the contract) But they will send you a certified letter to comply with the non soliciate.  And it is also highly unlikely that another firm would take you on without any production history or time in business. 

All they can ask a judge to do is issue an injunction, and in employment matters, unless somebody is publishing their entire customer list or something as damaging as that, they won't get it. 
People have to remember, in employment contracts, the worst that can happen to an employee is to get fired.  MAYBE solitciting 100 out of 1,500,000 customers (or whatever) isn't doing enough damage to a company to warrant an injunction.  Granted, after they sue you they can shut you down if you have a business, but that's an entirely different matter.  Welcome to the wonderful world of self-employment, you ain't got NO protections lol.
kerho, they not only can get TROs, they do get them with alarming regularity. As has been pointed out before, you're out of your depth on this so please give it up. You're wrong.
 
The original poster, if you bothered to read the ENTIRE paragraph, was he was wanting the LEAVE EJ and was concerned he'd have to pay the training costs.  He didn't say leave EJ AND find another FA job with another company and continue to work as an FA OR start is own business in the FA industry.
You guys don't understand law.

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And what is an "alarming rate" LOL Quantify please.  You refering to the article they have on this site? And basing your assumptions on that? You bother to follow the link I provided and do the research into the laws governing EMPLOYMENT CONTRACTS?
I'm sorry if you thought you were a slave and couldn't leave.  If you didn't know, they outlawed indentured servitude long ago.

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Kerho said: "And I guess EJ's requirement isn't reading skills?  The ONLY piece of advice I have given him is to SEEK AN ATTORNEY.  I know big posts are really boring to read therefore skim the 1st five lines and make up the rest in your head.
I think you need to reread his post, he never spoke of staying in the biz, ONLY quitting EJ.  "
When and where did you give advice to confused to seek an attorney?  By reading the posts and with your expertise in the employee contract arena, it really surprises me that you are not a JD.  I hear you giving alot of advice....but not to seek an attorney. 
Back to a friendly note....How did your phone interview go and when is your face to face scheduled? Edward Jones would be proud to extend employment to such a cunning person as yourself.

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kerho wrote:Broker7 wrote:
Kerko,
Your ignorance is painful. You directing the poster of this thread in a blind manner.  You have no knowledge about this situation.
Do you or have you worked for Jones? Have you even seen the contract in question? Do you realize you sign a document stating you will be responsible for training expenses?(I will presume the answer is no by reading your previous posts)
Third, if the law is so clear, how then how has edward jones collected millions of dollars in training cost from brokers that left during the contract period/ violated the non-soliciate clause.  According to you, it is not possible by law.
Civil court??? It goes to the NASD arbitrator. (no appeal) Why don't you do a search on this forum before you post another reply.

Hello?  did you listen to nothing I posted? LOL  I'll say it again:
It doesn't matter what EJ has in their employment contract, you can put anything in there, but it doesnt' mean it's ENFORCEABLE.  It is not a business to business to contract, it's COMPLETELY different than a normal contract.  A company, whether you have it in your contract or not, can not hold employees responsible for the cost of training them TO DO THEIR JOB.
Like I said, consult a lawyer, they'll say the same thing.  EJ is gonna lose, $30k to find out, settle for $25k to be done with it, $5k retainer to respond to their letter, have a nice day.
Now as far as retaining your license and continuing to practice, I can't answer to that but that wasn't the question.

 
Not that it matters.

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Broker7 wrote:Kerho said: "And I guess EJ's requirement isn't reading skills?  The ONLY piece of advice I have given him is to SEEK AN ATTORNEY.  I know big posts are really boring to read therefore skim the 1st five lines and make up the rest in your head.
I think you need to reread his post, he never spoke of staying in the biz, ONLY quitting EJ.  "
When and where did you give advice to confused to seek an attorney?  By reading the posts and with your expertise in the employee contract arena, it really surprises me that you are not a JD.  I hear you giving alot of advice....but not to seek an attorney. 
Back to a friendly note....How did your phone interview go and when is your face to face scheduled? Edward Jones would be proud to extend employment to such a cunning person as yourself.

Next week for phone interview and haven't gone further than that.  You with EJ?  If you are I'd like to pick your brain, I have pages of questions that nobody can answer yet.  I'd appreciate your experience and opinion.

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Confused,
They will demand the training money paid back if you transfer your license to another b/d.  If you don't pay they will file for arbitration.  Can they win?  Well its never been tested (although even if it had been, there is no such thing as precedent in arbitration).  It would cost you $20,000 - $30,000 in lawyer fees to go to arbitration and even if you were as confident as kerho, do you really want to risk losing?  Remember arbitration is not the same as civil court, you are at the whim of the arbitrator, and you have limited means to appeal.  Even a settlement will cost you over $5K in lawyer fees plus whatever you can get EDJ to settle for.
At this point in your career, you either need to suck it up until you get out from under the financial commitment or go into a different career.

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vagabond wrote:
Confused,
They will demand the training money paid back if you transfer your license to another b/d.  If you don't pay they will file for arbitration.  Can they win?  Well its never been tested (although even if it had been, there is no such thing as precedent in arbitration).  It would cost you $20,000 - $30,000 in lawyer fees to go to arbitration and even if you were as confident as kerho, do you really want to risk losing?  Remember arbitration is not the same as civil court, you are at the whim of the arbitrator, and you have limited means to appeal.  Even a settlement will cost you over $5K in lawyer fees plus whatever you can get EDJ to settle for.
At this point in your career, you either need to suck it up until you get out from under the financial commitment or go into a different career.

Keep in mind though, Jones does not want to Arbitrate either.  If you are smart you can settle for much less than the face amount.

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vagabond wrote:
Confused,
They will demand the training money paid back if you transfer your license to another b/d.  If you don't pay they will file for arbitration.  Can they win?  Well its never been tested (although even if it had been, there is no such thing as precedent in arbitration).  It would cost you $20,000 - $30,000 in lawyer fees to go to arbitration and even if you were as confident as kerho, do you really want to risk losing?  Remember arbitration is not the same as civil court, you are at the whim of the arbitrator, and you have limited means to appeal.  Even a settlement will cost you over $5K in lawyer fees plus whatever you can get EDJ to settle for.
At this point in your career, you either need to suck it up until you get out from under the financial commitment or go into a different career.

Thx, that's what I was trying to say LOL

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Which is pretty much what everyone else was saying while you were telling them they didn't know doodly squat about labor laws.
 

newandconfused's picture
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so all of this will happen even if I get fired?

kerho's picture
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Whomitmayconcer wrote:
Which is pretty much what everyone else was saying while you were telling them they didn't know doodly squat about labor laws.
 

Nobody was even close until Vagabond posted that.  And I stand by my observation of most who responded to his original post know nothing of labor laws governing employment contracts.

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newandconfused wrote:so all of this will happen even if I get fired?
 
This is an FA board, not a labor law board.  Seek an attorney who specializes in LABOR LAW to advise you about quitting and what you will owe and how it will probably play out.  As far as taking a job with another company and how the non-solicite and non-compete clause will work, he may or may not be an expert in the matter and he may refer you to somebody who deals in those things.
And I hope you understand that this board is just ONE source of information and never act upon what people here say (including me) when it comes to doing something like getting out of a contract which could impact the rest of your life.

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