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Does a breach of contract cause the whole agreement to be voided in arbitration?

The owner of my company makes it a practice of going into accounts that the sales people opened and then stopping paying commissions to the sales people. The sales people are commissioned w2 employees who have signed employement contracts that include a non-compete.

If a pattern of this behavior can be proved, would it invalidate the entire agreement?

2 answers  |  asked Dec 1, 2011 5:49 PM [EST] in Contracts  |  applies to Ohio

Answers (2)

Neil Rubin
Again, as I have written so many times before (see non-compete archives), a non-compete in force is a trapdoor for the employee. As Bruce wrote above, you certainly have arguments against the enforcement of the agreement if you get sued, but the real trick is not getting sued in the first place.

Hire a lawyer to give you a professional opinion.

posted by Neil Rubin  |  Dec 2, 2011 10:22 AM [EST]
Bruce Elfvin
You would have some very strong arguments that enforcing the non-competes would violate public policy as the employer is using the commission sales staff to open accounts and then denying them compensation on the accounts.

You should see an employment lawyer near you. You can select one at: www.oelasmart.net/directory

posted by Bruce Elfvin  |  Dec 1, 2011 6:27 PM [EST]