Non Compete along with Commission Dispute (Michigan)

Let me start by saying that I am evaluating the move to a direct competitor (in general) and looking for some advice on my non-compete. In 2012, when I was an Account Manager, my company did not want to pay me the full amount of commission that was owed to me with the explanation that they made a mistake when defining it. Someone overheard me talking about suing them for the $##k and reported it to HR. A week later I got the ‘tap on the shoulder’ and was escorted to a conference room where my manager, HR, and the company president were seated; historically, everyone else in that situation got fired. They placed a document in front of me that basically said that they would pay me 23% of $##k if I would unconditionally release and forever discharge them of any future claims while denying any plausibility that my claim was valid or the company was at fault. Next it included a confidentiality clause limiting my ability to discuss the ‘resolution’ with anyone other than the IRS, my spouse, and financial planner (nothing about talking to a lawyer). In the same document they also included a non-compete that I am certain is too broad, but even if narrowed by the courts it might limit me from making the move I am contemplating. A couple of other notes (1) Since 2012, I have been promoted to Sales Manager and then recently transitioned (demoted) to Executive Account Manager (2) The company did create a non-compete for existing management and new hires that was not as broad as mine which stated the specific company names of the competition included in the non-compete; the company that I am looking at is not on that list (I was not asked to sign the updated agreement) (3) There are five (5) people that I know of who have left my current company to go work for the companies on the new non-compete agreement that were not pursued with any legal action nor am I aware of any legal action to enforce the non-compete for any ex employees. (6) When I asked my manager what happens if I don’t sign the agreement he told me that I would be fired (but my understanding is that working in an at will state negates any claims of duress). While I would like to dig deeper into my new employment opportunity, I am hesitant. This site has provided me with substantial understanding on non-compete agreements, but I am not sure how the financial dispute plays into the picture. Many thanks to any feedback that you can provide.

0 answers  |  asked Apr 10, 2019 2:39 PM [EST]  |  applies to Michigan

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