If I signed a non compete agreement, can I get out of it since I’m being paid under the table?

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If I signed a non compete agreement, can I get out of it since I’m being paid under the table?

I’m in the beauty industry. I signed a non-compete basically saying that I cannot provide services similar to what I do now any where within a 20 mile radius for a year. Will this hold up if it were to become known that I was getting paid in my boss personal checks and never given a W2 or 1099? Also, could we both get introuble?

Asked on March 5, 2019 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

1) Being paid properly or instead "under the table" is irrelevant to the agreement: you are being paid, which means you are receiving "consideration," or a thing of value, in exchange for the agreement. That's all that is necessary to make the agreement binding. Tax violations are a separate issue.
2) Your boss could get in trouble for not properly withholding and not documenting your income. You could get in trouble if you did not list all your income on tax returns and pay the appropriate taxes on it, since if you failed to declare or pay taxes on some or all of your income, you violated the tax laws, too.


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