Non compete is with another company

My fiancee' executed an employment contract in connection with the services he performs, retail design - when he first started working for them approx. 8 years ago. This particular company is duly incorporated in the state of NC. However, 4 years ago, his paychecks suddenly began to be issued by a "sister company", also incorporated in NC. No amendment to the employment contract was ever presented or executed. A review of NC Secretary of State indicates no obvious connection between the first company (the one contracted with) and the "sister" company, which is now issuing the paychecks (i.e., no filing of a certificate of assumed name, etc.).

I assume that my fiancee's employment contract (inclusive of a non-compete clause) is a promise not to compete against the company he contracted with, and in exchange, THAT company gives him employment. That being said, if the company he contracted with fails to live up to its end of the bargain (i.e., not paying him, because another totally unrelated company is� ) then does this render his contract invalid, particularly since there is no specific relation on file with the NC Secretary of State as to one being an assumed name for the other?

1 answer  |  asked Nov 26, 2007 7:28 PM [EST]  |  applies to North Carolina

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Answers (1)

Reagan Weaver
Employed by whom?

Ms. Boothe
You have an interesting question. I wouldnt give you an answer that you could rely upon without doing some research, but I cant say Im optimistic. I do wonder who issues him the W-2s each year, and who has he been reporting was his employer when he filed his taxes? There may be other aspects of your fiancees situation that would give him a way to leave without worrying about the covenant. It depends on what the covenant says, when he signed it, whether he expected to be required to sign it before he began work, whether the terms of the covenant are reasonable, etc. He may be restrained and in no position to challenge the covenant, but you are doing what you need to do to look at his options. If he (and you) would like to come to Raleigh for a consultation as to his rights, please call my paralegal, Barbara Westphal, at 919.828.0363 to arrange an appointment.

posted by Reagan Weaver  |  Nov 26, 2007 9:01 PM [EST]

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