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My going to be employer wants me to sign a employment contract for 2 years as a 'at will' employee. Ihave 2 concerns in this contract- 1. It says if I were to terminate the contract,I would have to pay back $5000 for training cost. 2. While employed with this company, I may not perform paid permanent makeup services as a freelancer or in any salon/spa/clinic within 25 miles. 3. It's a commission base salary, no base pay. Is it this a legal contract terms? If I were to do paid permanent makeup up services outside of the salon, what is the worst case scenario? Being fired? Can they sue me? No base pay, which means my income depends on having clients, if no clients then no income and I can't quit, otherwise pay back $5000. Is this a fair legal employment contract? Thank you.
1 ANSWER
I have serious doubts that the $5,000 training fee repayment would be enforceable, although it is possible that it would be if your employer actually incurred that expense for your training. I see no reason why the restriction on performing services within 25 miles would not be enforceable - it almost certainly would not be enforceable if it provided that you couldnt' compete within 25 miles AFTER your employment was terminated, but your employer is certainly allowed to bar you from moonlighting while employed. Moreover, as an at will employee, your employer can fire you for almost any reason; you could be fired for moonlighting even if the provision was not in the contract. From the little you've written, being fired, and possibly being ineligible to collect unemployment, seems like the only consequence of breaching the 25 mile provision, but it is possible, depending on exactly what the contract provides, that you could be liable for damages for such a breach. I also see no problem with a commission-based compensation scheme (assuming no problem with minimum wage laws, on which I have no expertise and am not offering any opinion.) As for whether this is a fair contract, only you can decide that for yourself.
Answered on Mar 11th, 2016 at 7:12 AM