Q: I am 1099 employee with employment contract. If I get furloughed , does the company still owe $$ for previous sales?
I have an employment contract/non-compete agreement. Would this agreement be null and void also?
A: The terms of your contract between you and "employer" would govern what happens if services are suspended and you had made sales that qualify for payment prior to the suspension. Often times, employers will put people on 1099 arrangements when in fact they have a more traditional employer/employee relationship going on. If that's the case, just because your employer decided you were a 1099 employee, that doesn't mean you don't still have some protections as an employee. The facts around the working relationship determine your status and the decision between you and the employer to "become" a 1099 contractor is only one factor of many. A close look at the contract and an analysis of the employment situation would be needed to determine your rights to payment and the application of the non-compete.
Tim Akpinar agrees with this answer
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