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  1. #1
    Join Date
    Nov 2005
    Location
    Pacific NW
    Posts
    3

    Default Former employer withholding owed money

    Left an employer at the end of August. Because of an existing non-solicitation contract, I refused to divulge where I was going to either employer or customers, so that there would be no concerns over that.

    Shortly after I left, I emailed employer regarding a sum of money owed me from a previous bonus (and had the trails of emails regarding it). His response was an immediate blowup and very threatening, stating that it was the intent of the company to enforce all parts of the non-solicitation/NDA, and essentially that it would be withheld to ensure the company suffered no damages. While I do not believe there are any grounds for his concern or grounds for withholding that payment, I do not want to risk being taken to court because of it (regardless of the outcome, which I absolutely believe I would win--I just don't want that headache).

    Any thoughts?

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Bonus Withheld

    Your employer has apparently admitted that the compensation is due, by asserting that it is being withheld. Perhaps your state's department of labor (or equivalent) - whatever agency handles wage and hour matters - will purse a complaint for you if you file one.

    Obviously, there is no way to guarantee that the employer won't then try to enforce its non-compete clause (to the extent that it is enforceable); but presumably you're not breaking it.

  3. #3
    Join Date
    Nov 2005
    Location
    Pacific NW
    Posts
    3

    Default highly likely non-enforceable

    Here in WA state, there was a landmark case at our Supreme Court a year ago that essentially stated that if a restrictive covenant was signed after employment, there must be certain things in it as "compensation" for the employee over and above what would be recieved as normal course of employment.

    It does not include those. Additionally, he had purchased the company just prior to this ruling (so likely these facts may not have been detected by his lawyer), and these covenants were transferrable from old employer to new. Correct me if wrong, but then, since there were no changes since the transfer, he is somewhat bound by the previous owner's actions regarding the covenants. There was no attempt by prior ownership to enforce.

    So, lots of things going my way, but again, trying to avoid litigation (he has money, so a prolonged case would not affect him like it would me).

  4. #4
    Join Date
    Nov 2005
    Location
    Pacific NW
    Posts
    3

    Default would it make sense?

    ...to try to pre-emptively have the covenant declared unenforceable? What would be involved in that?

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