List not particularly suitable for searching the collection to see if it contains a specific element, what exactly do you want to do. Although writing code is quite simple (there are already many answers showing how), you will greatly benefit from using a more appropriate data structure that can be more efficiently searched for, for example, HashSet :
var notInGroups = new HashSet<string>(GetNotInGroups()); var list = from p in employees where !notInGroups.Contains(p.Group.Name) select p;
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