Non-Compete "Consideration"

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Anonymous

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Could someone explain to me how this works legally?

Corporate: "Please sign your non-compete, and we won't cut your distributors commission by 1%."

Rep: "So you're not giving me the legal requirement of monetary cosideration?"

Corporate: "We just did. You're getting to keep the money we were thinking about taking away."

Rep: "What if my distributor had chosen to absorb that cut, then you really didn't give us anything did you? And aren't you getting ready to make that very cut anyway?"

Corporate: "Please sign on the X"

Dilbert would be proud!
 



No one can force you to do anything. If it doesn't smell right, don't do it. Non compete laws vary between states and a labor attorney could advise for your state. If you're employed in a "Right to Work" state, they can fire you without cause. It's unlikely they would over not signing a non compete, if you're a good rep. If what you say is true, it appears they may be trying to coerce you into signing their document. They don't have to provide "consideration" and its not illegal if they don't. They're going to try anything to get you to sign. The company can reduce your distributor's commissions at any time whether you sign or not. Get an attorney. Its money well spent if you want to continue with the company. However, given their tactics thus far, the bigger question to ask yourself, is this the company you want to work for long term?
 



Anonymous said:
No one can force you to do anything. If it doesn't smell right, don't do it. Non compete laws vary between states and a labor attorney could advise for your state. If you're employed in a "Right to Work" state, they can fire you without cause. It's unlikely they would over not signing a non compete, if you're a good rep. If what you say is true, it appears they may be trying to coerce you into signing their document. They don't have to provide "consideration" and its not illegal if they don't. They're going to try anything to get you to sign. The company can reduce your distributor's commissions at any time whether you sign or not. Get an attorney. Its money well spent if you want to continue with the company. However, given their tactics thus far, the bigger question to ask yourself, is this the company you want to work for long term?
Click to expand...

do not waste your money on an attorney a non compete is an industry standard in place to protect parent company or agents investments you will make your attorney wealthy fighting as will the agent remember their pockets are deeper so they can legally drag things out until you are out of money

been there done that ( on both sides of the coin) no one wins but the attorneys
 









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