I was contracted to provide tutoring services as an independent contractor to a tutoring company’s client. The contract stated that I would be paid every two weeks. There is also a non compete clause that states it is in effect for 1 year after discontinuation of services. They failed to pay all employees and contractors on Oct 25 and stated they would send payroll on Nov 1, and then fall back into the regular schedule. I have since learned that this is an ongoing issue. Would this failure to pay constitute a breach of contract? And if so does it also void the non compete, thereby allowing me to continue with providing services to the student privately? Thank you!
The enforceability of the non-compete depends upon many factors including the terms of the contract, the scope of the restriction (in both time and geographic reach), and how much you were paid. In the end, courts are remiss to enforce overbroad noncompete clauses in contracts because they don’t want to prevent someone like you from providing for yourself. Also, there may be an argument that the noncompete was only given by you as consideration for the tutoring's company's agreement to pay you. If they never paid you that then there MAY be an argument that they did not provide their consideration which MAY relieve you from the non-compete obligations. But if the pay was simply delayed, that might not be as strong of an argument. In the end, the precise wording of the non-compete as well as the other provision of the contract will ultimately determines if it will be enforced.
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