Legal Question in Business Law in Virginia

Re: Noncompete restrictions

I agree so long as the specific terms of the agreement are reflected in you fact summary.

If the contract sets the rate of pay, you can enforce the contract and are not required to modify the terms. This is why they have asked you to sign another written agreement rather than simply reduce you check.

Should the employer breach the contract and not pay the agreed upon rate of compensation without your written consent, it will be difficult for the employer to enforce the non compete provision so long as both obligations, (1st yours to work and not compete and 2nd their to pay) are part of the agreement. [Sometimes, non competes are supported by separate consideration such as the payment of a bonus which, if accepted can support a separate non compete obligation.]

Re: Noncompete restrictions

Arguably you would have some recourse against the employer. It is difficult to give a definitive answer without first having reviewed the terms of your contract and noncompete. Is your employer requiring you to sign a new employment agreement at a lower salary at the end of the 1 year term - or is this a modification of the existing agreement? If it's a modifiction, you would be able to argue breach of contract. I would suggest obtaining a waiver of the noncompete as consideration for any reduction in pay.

Finally, if your employer refuses to pay at the contract rate, arguably a party in breach cannot sue for breach of contract. The non-compete was given in return for the promise to pay for the full year which was not performed. This may not be a slam dunk winner -- not aware of any cases construing enforcement of non-competes by a party that breached a contract by changing terms in mid-deal under Virginia law.