I was given a job in NC 2 years ago with a specific contract stating my pay rate. My employer is not wanting to amend that contract with a 20% reduction in pay- I would not have accepted this salary and moved from MS if this was the original offer. I sign

I was offered a job in NC in July 2013 while residing in MS. I was given a significant pay raise and accepted the job and signed a non compete agreeement. After 2 years, my employer has informed me that they are lowering my salary by 20% and I'm wondering if this invalidates the non compete since they are voiding the original agreement?

1 answer  |  asked Jun 29, 2015 10:03 AM [EST]  |  applies to North Carolina

Answers (1)

Brandon Atwater
Although they "may" be in breach of the contract with respect to the provision relating to your pay, that does not necessarily that the original agreement is void. Moreover, it does not necessarily mean that you are released from your obligations under the contract.

With regards to the non-compete clause, typically in North Carolina, Non-compete clauses must be supported by separate "consideration", which basically means that they must have given you something extra for that provision to be enforceable. In addition, in North Carolina, non-compete clause are generally disfavored. However, if they are reasonable with regards, time, location, industry, etc., they can be enforced.

As a side note, in North Carolina, if the employer reduces your rate of pay by 20% for any reason other than your performance, then there is a good chance that if you decide to resign, you can collect unemployment until you find a new position.

posted by Brandon Atwater  |  Jun 29, 2015 10:23 AM [EST]

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