What state are you in? Non-compete clauses aren't legal in all of them.
Can you paste the clause for us to see?
There are numerous variations to non-compete clauses. I have to sign one every year at my "real" job away from TFM. Ours is more along the lines of a nondisclosure--I can't go to work for a competitor because I might reveal proprietary/confidential information (trade secrets, customer lists, etc.)
One that may apply, not necessarily to you but to the contractor you work for, is more along the lines of non-solicitation. The MSO might have made each contractor agree not to solicit employees from each other.
Other non-competition clauses (like mentioned somewhere in another reply) usually apply to some radius and time limit. It sounds like they're telling you that you're in this boat. Problem is, these are usually used to keep someone (doctor, lawyer, stock broker, etc) from taking clients from the employer that you're leaving. If the MSO already has their list of contractors they use, I don't see how you going to work for another one already in the system can pose a problem unless you'll steal all of the work away from your old boss. Anyway...I'm not a lawyer, and I don't even play one on tv. I do know a couple, though, so if you could post the clause in your contract I'll pass it along. One other option for you is to find a local labor-relations office and see what they have to say about it.
Re: no-compete clause...
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