Reduction in compensation after non-compete signed

I signed a non-compete in Ohio in 2006. I am a Sales Rep for a company and about half of my weekly income comes from commissions.

Recently the company added a new quota on the amount of weekly sales transactions I must generate to be eligible to receive any commissions. In the past I was paid on any and all transactions.

In the past 6 weeks since the new quota was put into effect only about 50% of the company's sales staff is hitting the quotas on a weekly basis. Meaning every week, half the sales team in not getting paid any commissions which equals about half of their total compensation.

Would such drastic reduction in compensation or even the drastic restructuring of the compensation package invalidate a non-compete agreement?

1 answer  |  asked Sep 11, 2009 07:21 AM [EST]  |  applies to Ohio

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Answers (1)

Bruce Elfvin
The answer will depend on the actual terms of the written non-compete and the remainder on whether or not a jury would find that the change in the compensation plan was such a material breach of contract that you would be excused from any obligations under the non-compete.

This is definitely a time to see an employment lawyer and review the compensation plan, the changes and the non-compete to determine whether or not it would be enforced in whole or in part. This may not be known without challenging the agreement.

You can select an attorney at www.oelasmart.net/directory

Regards, Bruce Elfvin

posted by Bruce Elfvin  |  Sep 11, 2009 07:26 AM [EST]

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