Late Pay and Covenent Not to Compete
My employer is more then two months late in giving me my last paycheck before my layoff. They don't dispute that they owe me the money they just need "some more time". I would prefer to open my own business or work for a more reliable company even if they eventually are able to make payroll. Would my non competition clause still be enforceable?
2 answers | asked Jul 7, 2011 1:59 PM [EST] | applies to Pennsylvania
Answers (2)
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, Mr. Goldner's answer is right on the money. Furthermore, if you have been laid off through no fault of your own, the noncompetition agreement may not be enforceable against you. Generally, an employer has to have a 'legitimate business reason' for enforcing the noncompetition agreement. The courts have stated that if the employer has decided it doesn't need to keep you, then it likely does not have a legitimate business reason to keep you from working.
Also, if the employer breaches the employment agreement with you (i.e. by not paying you), then that may also be an effective defense against a claim that the employer wants to enforce your end of the bargain (i.e. the noncompetition agreement). I'd need to see the employment and/or noncompetition agreement(s) to give you a firm opinion.
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/
The Ezold Law Firm, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com
posted by Christopher Ezold | Jul 8, 2011 05:40 AM [EST]
That being said, Mr. Goldner's answer is right on the money. Furthermore, if you have been laid off through no fault of your own, the noncompetition agreement may not be enforceable against you. Generally, an employer has to have a 'legitimate business reason' for enforcing the noncompetition agreement. The courts have stated that if the employer has decided it doesn't need to keep you, then it likely does not have a legitimate business reason to keep you from working.
Also, if the employer breaches the employment agreement with you (i.e. by not paying you), then that may also be an effective defense against a claim that the employer wants to enforce your end of the bargain (i.e. the noncompetition agreement). I'd need to see the employment and/or noncompetition agreement(s) to give you a firm opinion.
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/
The Ezold Law Firm, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com
posted by Christopher Ezold | Jul 8, 2011 05:40 AM [EST]
Irrespective of whether the non-compete provisions are valid, they have violated the PA Wage Payment Collection Law which provides for mandatory liquidated damages ($500/infraction) plus counsel fees. For that alone you may want to secure counsel.
As far as the non-compete goes, nobody can advise you without:
1. Reviewing the agreement (and the circumstances under which you signed it); and
2. Reviewing the facts of your termination with you.
I suggest you contact a PA employment lawyer to determine what your rights are.
Harold M. Goldner
http://www.krautharris.com
posted by Harold Goldner | Jul 7, 2011 2:38 PM [EST]
As far as the non-compete goes, nobody can advise you without:
1. Reviewing the agreement (and the circumstances under which you signed it); and
2. Reviewing the facts of your termination with you.
I suggest you contact a PA employment lawyer to determine what your rights are.
Harold M. Goldner
http://www.krautharris.com
posted by Harold Goldner | Jul 7, 2011 2:38 PM [EST]
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