Does the non-compete agreement still apply

My employer has failed to pay me for a number of months. That would seem to be a breach of the employment contract. So would a non-compete agreement that is otherwise valid still be in effect? It would seem that if the employer is unable to provide compensation for my skills I should be free to seek other employment.

2 answers  |  asked Aug 6, 2009 09:20 AM [EST]  |  applies to Texas

Answers (2)

Dana LeJune
While Ms. Weinberg is correct that not paying an employee does not invalidate the NC agreement, if you worked there for some period of time BEFORE they had you sign the NC, the employer MUST have provided some ADDITIONAL consideration to you (in addition to your normal pay) for the NC to be enforceable by the employer.

I would have to see the agreement and analyze it to give you complete and proper advice.

posted by Dana LeJune  |  Aug 9, 2009 4:13 PM [EST]
Jill J. Weinberg
I cannot comment on the agreement you signed because I have not reviewed it. It should be reviewed ASAP by a qualified attorney so you are fully aware of your legal exposure, if any, if you breach it. Ideally, it should have been reviewed by an attorney before you signed it.
Generally, in Texas, a valid non-compete involves (among other requirements) an employer's agreement to provide new (not past) confidential/trade secret information or/and specialized training in exchange for an employee's promise not to compete for a set time and set geographic location. It is not tied to paying an employee's wages. For this reason, failure to pay an employee does NOT invalidate the non-compete.

posted by Jill J. Weinberg  |  Aug 6, 2009 11:24 AM [EST]

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