Unpaid Wages And Non Compete

Summary

In New Jersey, employers are required to pay all earned wages, including unpaid vacation days. You can file a wage claim with the New Jersey Department of Labor and Workforce Development. Non-compete clauses are generally enforceable if they are reasonable in scope, duration, and geographic area, and do not impose undue hardship. Courts may refuse to enforce these clauses if they are overly restrictive or unfair. Consulting an employment attorney could provide personalized advice and help you challenge the clause effectively.

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I was a worker for CompanyX since Aug *, working as Business Analyst, and left the company on ****ep *, *. This company provides services to other companies where I eventually worked with ClientA. As I understand from my timesheet, there are multiple layers in between client and my employer. ClientA has contracted the work to CompanyZ (a large multinational company) which intern is using CompanyY and CompanyY is using services of my employer CompanyX ( a very small boutique service company) ****o the hierarchy would be like this Myself -> CompanyX -> CompanyY -> CompanyZ -> ClientA I served my * weeks notice to CompanyX on ****ep *, * that my last day would be ****ep *, *. Earlier I was paid my salary till Aug18 but since I served my notice period, even with all the approved timesheets, they have not paid my salary and have not cashed my paid vacation days. I have joined CompanyZ on ****ep * which they claim violates my contract (they claim it was non compete) and are asking for $10k in penalty. It has been two months since I left them but I haven't received my pending pay including my last pay. This amount to * weeks of salary and * unpaid vacation days (total * week and 3 days). Even after repeated follow up, they are asking to pay penalty and have withheld my pay, which in my understanding is illegal. ****ubset of contract Employer is referred to here as CompanyX Right to hire: Employee acknowledges and agrees that he/she understand that he doesn’t have the right to join the client full-time, that was introduced to him by CompanyX Remedy for Breach: Employee acknowledges and agrees that the utilization of the services, training, skills, benefits and access to Clients provided by CompanyX, by Employee in competition with CompanyX, would be grossly unfair to CompanyX. and would result in continuing irreparable damage to CompanyX and therefore, EMPLOYEE agrees that a breach of this agreement will result in irreparable injury and damages to CompanyX. Therefore, Employee agrees that upon the occurrence of an irreparable injury and damage to CompanyX, as liquidated damages and not as a penalty, pay the sum of Ten Thousand ($*,*.*) U**** Dollars along with all legal expenses. CompanyX, in addition to all other remedies available to it, is entitled to immediate injunctive and equitable relief from Court having jurisdiction to prevent any breach and to secure the enforcement of its rights hereunder.
Given the situation, it looks like you have a strong case for both unpaid wages and contesting the non-compete clause.
- Employers are generally required to pay all owed wages, including unpaid vacation days.
- Non-compete clauses can be tricky and are often unenforceable depending on the state.
Which state are you located in? This information will help provide more specific guidance on the enforceability of the non-compete clause and wage claim laws.
New Jersey
In New Jersey:
- Employers must pay all earned wages, including unpaid vacation days. You can file a wage claim with the New Jersey Department of Labor and Workforce Development.
- Non-compete clauses are generally enforceable if they are reasonable in scope, duration, and geographic area. However, they should not impose undue hardship.
Would you like more information on filing a wage claim or contesting the non-compete clause?
Contesting the non-compete
Contesting a non-compete in New Jersey can be challenging but is possible under certain conditions. Here are some key points:
- Non-compete clauses must be reasonable in scope, duration, and geography.
- They should not unduly restrict your ability to work in your field.
- Courts may refuse to enforce these clauses if they are deemed overly restrictive or unfair.
Would you like to know more about the process of challenging the non-compete in court?
Based on my condition above, is non compete enforcable?
In New Jersey, the enforceability of a non-compete clause depends on its reasonableness in scope, duration, and geographic area. Given your situation:
- The clause should not impose undue hardship or restrict your ability to work.
- Courts may refuse to enforce it if it's overly restrictive or unfair.
Consulting an employment attorney could provide personalized advice and help you challenge the clause effectively.