about release from agency

[1881204]

Dear all

I am a new member here although I have reviewed many posts before I got an account. Thanks for all the awesome information. I have a question today about release from an agency.

My current IMO said if I don't do business with the carrier (NLG) for 6month, I will be automatically able to transfer to a new IMO. They said there is no such thing as a release form. I called NLG and was told that if my current IMO signs the release form, I can transfer right away. Currently, my upline said she approved my release and have sent the approval to our CEO. However, our CEO who is the signer is not responding...maybe because it is over the weekend. For me, I need it to transfer ASAP so I can start writing new business. If he chooses not to respond and just hang me here...what I can do to get things done? Any suggestions?

By the way, I am in California. I learnt that:
California Business & Professions Code section 16600 makes clear that any non-compete provision between an employer and an employee – in other words, any contract that restrains a person from engaging in a profession, trade or business – will not be enforceable under California law.

It seems to me that if they don't release me, they are 'retraining me from engaging in a profession or business'...Not sure if anyone here has used this code to get the release.

Thank you very much,

 

[somarco]

Just because a non-compete is not enforceable does not mean your former "employer" can't take legal action against you. You would still need to defend your rights and that costs money.

As for the wording in the referenced CA section, does it address 1099 workers?

1099 workers are not, by definition, employees.

There is no such thing as a “1099 employee.” The “1099” part of the name refers to the fact that independent contractors receive a form 1099 at the end of the year, which reports to the IRS how much money was paid to the contractor. In contrast, employees receive a W-2. Service providers are either employees or independent contractors; they cannot be both.

 

[Newby]

Dear all

I am a new member here although I have reviewed many posts before I got an account. Thanks for all the awesome information. I have a question today about release from an agency.

My current IMO said if I don't do business with the carrier (NLG) for 6month, I will be automatically able to transfer to a new IMO. They said there is no such thing as a release form. I called NLG and was told that if my current IMO signs the release form, I can transfer right away. Currently, my upline said she approved my release and have sent the approval to our CEO. However, our CEO who is the signer is not responding...maybe because it is over the weekend. For me, I need it to transfer ASAP so I can start writing new business. If he chooses not to respond and just hang me here...what I can do to get things done? Any suggestions?

By the way, I am in California. I learnt that:
California Business & Professions Code section 16600 makes clear that any non-compete provision between an employer and an employee – in other words, any contract that restrains a person from engaging in a profession, trade or business – will not be enforceable under California law.

It seems to me that if they don't release me, they are 'retraining me from engaging in a profession or business'...Not sure if anyone here has used this code to get the release.

Thank you very much,

You can engage in business you just can’t sell that particular company. You are being told some correct and some incorrect info. SOME companies (not all) will let you recontract elsewhere after 6-months of inactivity. Your question is very vague. You don’t tell who the insurance company is. Or your IMO.

But some companies won’t allow you to move your contract until you first CANCEL your agent number and THEN wait six months. If you plan to go in active for six months you’re much better off to cancel the contract and then wait your six months.

It sounds like your IMO does NOT release. Many don’t. You should check that on the way in the door not on the way out.

 

[Baseball7]

Time to start selling a different carrier and focus your efforts on something you can control.

 

[Newby]

Time to start selling a different carrier and focus your efforts on something you can control.

Best advice ever. ^^^. Agents worry themselves sick over dime a dozen carriers. There is no agent that is locked into anything. Pick up new companies and go. But be SURE to cancel those old contracts so you can start clean with them anytime after 6-months if you still want them at that point.

 

[tikibarrister]

IANAL but I thought CA’s “no non-compete” law did not apply to carrier contracts. You’re not being restrained from employment - the carrier is just choosing not to do business with you.

 

[bmarsh]

Time to start selling a different carrier and focus your efforts on something you can control.

Yea write for a different company, problem solved.

 

[WinoBlues]

Currently, my upline said she approved my release and have sent the approval to our CEO. However, our CEO who is the signer is not responding...maybe because it is over the weekend.

I am 100% in the agent camp when it comes to getting timely releases. However, Over the weekend is an unreasonable expectation for someone leaving them.