Changed the rules mid-stream

[R.]

I need some sound advice. I took a position in June of 99 as a sales consultant for a medium sized oganization that specializes in a very unique service. The company is based in TN. My particular discipline dictates that I acquire new business in and around the Atlanta area where I reside. I work from my home. The services are security related in nature and the sales reps (12 in the Country) are paid rather well for their efforts. Upon taking the job, I realized that the other sales reps with the company did and do not follow any geographical territories. Thats OK by me as I recently signed on a large account from outside my area.

Here's the problem. The company merged with another firm recently and the salary structure is undergoing some drastic changes. While I am on a commission structure presently, I receive a draw against future earnings. Around 5K a month. This is the deal I made hiring on in June. The NEW deal would give me a base salary (3K per mo.) and performance bonuses that may or may not reach my current level of compensation.

Am required to accept this as I am being told? Have I the right to look for work with a competitor? You see, I turned down a very good offer in Atlanta in June, in order to work for this company. YES, I signed my life away as most non-lawyers would do when trying to secure employment. However, I am not the one changing the rules mid-stream. Any advice? Any help? Thank You...

 

[Attorney_Replogle]

R: To begin with I can only offer advice under California law as I am licensed in that state only. However, most general law applies to all states. To begin with, usually companies that merge with other companies agree to be bound by the contracts entered into by the old company. This is not always the case though and may not be so in your situation. If the new company has the right to renegotiate contracts with employees then such a right is perfectly legal. Of course you are free to either accept their offer, reject it, or counter-offer with your desires. As far as your working for a competitor company, whether you could do so today would depend upon any non-compete clauses in your original contract of employment with your employer. Those clauses may or may not be in violation of Georgia state law. If they are not in violation then you would have to honor that agreement you made. So check this web site for a labor lawyer near you who can advise you better.

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Mark B. Replogle