Do questionable practices of a firm negate a non compete?

At the firm I work for all staff are hired as independant contractors for the tax and liability bennefit of the LLC which is owned by an individual. There is a strong case that this is a misclassification. Every employee has been made to sign a 1 year non compete and non solicitation contract barring "active solicitation of currentand former clients and employees".
In the last several months the LLC and it's owner has been served a cease and desist order by the state of **(Redacted). This resulted in the firm halting all NEW sales in half the states due to a fear of litigation. (Existing clients were still solicited for further sales which seems like a violation of the order) There have been numerous negative comments with regard to customer service that have been unanswered online resulting in 8 of the top 10 google serches bringing up negative information about the firm. Several other things lead me to believe that material facts may be misrepresented to clients and that it is time for me to move on. I have several clients who I feel may not recieve adequate customer service when I leave however I worry that the non-compete/non-solicitation bars me from even letting them know about my misgivings about the firm. Finally I feel the firm may refuse to pay me for the sales I completed in the final period before my resignation. If they do this would it void the non compete? Does the Desist and Refrain order by CA affect my contract? If they have violated the desist and refrain order does that leave them with unclean hands? Finally if I notify my current clients of my departure without stating a reason and they seek to engage my new firm does that amount to "active solicitation or former clients"? I tried to make this as concise and organized as possible while giving all the facts Depending on the cost I may be willing to pay for a consultation.

0 answers  |  asked Jun 22, 2009 8:21 PM [EST]  |  applies to Florida

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