I was recently emailed a notice that my sales services were no longer needed by a sub-agent California S corp that remarketed telecom services. I worked exclusively as a 1099 independent sub of a sub-agent contractor, with my responsibilities being cold-called prospects to generate sales and monthly commission residuals - with zero leads provided. I not only did that, but in addition paid my gas, hotel and car rental expenses so I could close business on behalf of this corporation. This corp. consists of 2 other people, the principle and her son, and required I sign a contract
requiring I work exclusively through it. I elected to start a competing company, which was discovered by this sub-agent corp., and now they've informed me they're confiscating my monthly residuals because I chose to compete. The reason I opened my company was due to their repeated breach of the agreement by not providing a detailed commission statement from the telecom carrier that we did business with, despite their contractual requirement to do so. Furthermore, what precipitated me starting my company was I discovered the corporation's principle had called on my customer, without my knowledge, in order to avoid splitting the commission.
- Are "exclusive" independent agent contracts binding and legal in California?
- If so, in event of their breach, do the exclusivity provisions remain valid?
- If so, does the principle's attempt to call on my account and thus not split the commissions with me, invalidate the contract?
- Can my commissions be confiscated under the exclusivity provision I signed?
Thanks for you assistance.