Legal Question in Business Law in Alabama

Competing against ex-employer

I have been working as an independant agent for a small firm for 18 months. Previous to my ''independant agent'' status, I worked as a commissioned sales rep as an employee for the same firm for an additional year. When I made the transition from employee to independant, my previous employer and I agreed verbally, that I would continue to work on my accounts, send the billing through my previous employer, and they in turn, would pay a set commission on gross sales.I agreed to do this, as I felt indebted to my previous employer (ethically and financially).

This has worked out satisfactorily for the last 18 months. However, now that they have received a considerable amount of income, through my labors and at my expense, I feel the debt has been paid.

I would now like to terminate our agreement (which is not in writing), and solicit my current customers under my business solely. What steps must I take legally, to avoid a lawsuit, and how do I ensure I am paid the commission I am owed? Most revenue in this business has a turn around time of 60 to 90 days.


Asked on 9/24/03, 2:12 pm

1 Answer from Attorneys
Bobby Lott, Jr. Attorney at Law

Re: Competing against ex-employer

If you don't have a written no compete clause, you should have no problem servicing your customers on your own. If they refuse to pay your commissions owed in a timely manner, call my office and we might have a case.

205 - 322 - 3747

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Answered on 10/03/03, 2:21 pm


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