If I signed a non compete agreement, can I get out of it since I’m being paid under the table?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I signed a non compete agreement, can I get out of it since I’m being paid under the table?
I’m in the beauty industry. I signed a non-compete basically saying that I cannot provide services similar to what I do now any where within a 20 mile radius for a year. Will this hold up if it were to become known that I was getting paid in my boss personal checks and never given a W2 or 1099? Also, could we both get introuble?
Asked on March 5, 2019 under Employment Labor Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
1) Being paid properly or instead "under the table" is irrelevant to the agreement: you are being paid, which means you are receiving "consideration," or a thing of value, in exchange for the agreement. That's all that is necessary to make the agreement binding. Tax violations are a separate issue.
2) Your boss could get in trouble for not properly withholding and not documenting your income. You could get in trouble if you did not list all your income on tax returns and pay the appropriate taxes on it, since if you failed to declare or pay taxes on some or all of your income, you violated the tax laws, too.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.