Q: How do I go about extricating myself from a 1099 contract with non-compete clause and get funds owed?

A: Your post suggests some violation of the law, some misunderstanding of the law, and a likely breach of contract claim.

As a California resident, California law applies to protect you even if an agreement states otherwise. The MA law choice of law and venue provision will be rendered unenforceable by virtue of California statutory and case law.

California law is very protective of employees, and will not allow employees to be called independent contractors in most situations where the worker is controlled in any way, or where the worker carries out part of the employer's primary business. If you have be misclassified as a contractor, you may have substantial damages and wage penalties owed to you.

A non-compete clause is considered to be unenforceable as against public policy as stated in Business and Professions Code section 16600. However for work performed outside of California the non-compete clause may well be enforceable, so you are only free and clear of that provision if you continue to work in the State of California and sell only to California buyers. Most other states will enforce a non-compete provision that is reasonably enforced. If the company wishes to do so, it can go to a court in its jurisdiction and get a declaratory judgment that enforces the non-complete provision, and then enforce that judgment in California, pursuant to the sister state judgment laws. That means to completely be free of the provision, you need to beat the employer to the courthouse and get your declaratory relief judgment before it does so. It is not as simple as saying all non-compete provisions are unenforceable anywhere.

In California, and in many other jurisdictions, unless you have an agreement to the contrary about that status, you are considered to be an at will employee. The employer of an at will employee can change the terms and conditions of employment at any time and for any reason or even no reason at all. Therefore your employer had the right to change the commissions earned, and the only real limitation is that the employer can only change commissions prospectively, meaning they cannot change commissions for sales already closed. More therefore needs to be known if you have a meritorious claim for the additional commissions.

It would be wise for you to locate and consult with an experienced employment law attorney as soon as possible to explore your facts and determine your options. I would suggest you look either on this site, or go to www.cela.org, the home page for the California Employment Lawyers Association, an organization whose members are dedicated to the representation of employees against their employers.

Most employment attorneys who practice this area of law offer a free or low cost consultation in the beginning and then, if the matter has merit and value, will usually agree to work on a contingency basis, meaning you can hire an attorney without paying any money until the matter results in a positive outcome for you. Many advance all the costs of the litigation as well. Do not let fear of fees and costs keep you from finding a good attorney.

Good luck to you.