Change in Commission Plans

Does a New Non-Compete have to be signed after every
commission plan change, They keep changing to lower are over compensation

1 answer  |  asked Feb 17, 2011 5:24 PM [EST]  |  applies to Pennsylvania

Answers (1)

Christopher Ezold
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.

That being said, your question leaves out a number of facts that I'd need to know, but the general answer is that a new noncompete does not HAVE to be signed after every change in commission structure. If the commission structure changes actually lower your compensation, there is a good question as to whether the noncompete is even valid, as you've gotten nothing in exchange for your promise not to compete. It may be that the only valid noncompete you have is the first one that you signed, if you signed it as part of your initial hiring - and even then, there are a number of situations in which that first noncompete might not be valid.

If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.

/Christopher E. Ezold/
Chair of the Board,
Magellan Leadership Group

The Ezold Law Firm, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585

posted by Christopher Ezold  |  Feb 18, 2011 08:32 AM [EST]

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