Changing its formal employee relationship

Reference no: EM1381942

Benjamin is a long-time key salesman for Morton and Dunderfield, a business supply company in Eastern Pennsylvania. The company decides to change its formal employer/employee relationship with all of its sales people, including Benjamin. Instead of compensating them with salary and a bonus based on quarterly sales, they change the relationship to that of an independent contractor who earns a sizeable percentage commission each month. With the change in this relationship, Morton and Dunderfield require all of their sales people to sign employment contracts which contain a clause that states upon leaving Morton and Dunderfield's employ, they will not contact any former customers for a period of two (2) years. Benjamin, fearing he will lose his job, signs the agreement. After the first month, he realizes he will earn much less that he formerly did.

He seeks your advice on his options.

Reference no: EM1381942

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