The most important and most difficult contractual provisions to negotiate in any broker or financial advisor's employment contracts are not the salary or commissions to be paid by the brokerage firm but the non-competition and non-solicitation provisions buried in the fine print of employment agreements The terms of up-front bonuses coupled with forgivable loan and/or promissory note provisions are not for novices. These contractual provisions are often not mentioned in the negotiations and go unnoticed until you or the firm terminates the employment relationship, rightfully or wrongfully. It pays to have skilled counsel when negotiating these provisions and certainly pays to have an experienced trial lawyer when the brokerage firm attempts to enforce them upon your departure. Attorney Pearce at The Law Offices of Robert Wayne Pearce, P.A. has advised brokers and financial advisors on negotiating these contract provisions and defended them when brokerage firms have attempted to enforce unjust contracts with their former registered representatives.Don't Let Non-Competition/Non-Solicitation Provisions Handcuff Your Career
The brokerage firms typically use restrictive covenants to bind new and experienced brokers in the industry as part of their "transitional compensation" in employment agreements. These provisions can restrict your ability to take a future position at another firm within a certain geographic area or for a certain period of time and effectively prevent you from contacting and/or doing business with clients that you cultivated and serviced for many years. Some of these provisions require the reimbursement of training costs and make an early departure from a horrible employer financially impossible. Other brokerages incorporate provisions with consents to the issuance of a temporary restraining order, preliminary or permanent injunctions that will prohibit any form of competition with your old employer, and solicitation of your oldest and best clients. These restrictive covenants must be reasonable in time, distance, the definition of a "customer," "solicitation," etc... The best defense is to avoid them during the negotiation of these provisions. Thereafter, they can only be defended with the help of skilled and experienced employment litigation and arbitration lawyers. Mr. Pearce has over 40 years of experience in the negotiation and defense of these matters and he will do his best to not let brokerage firms handcuff your career.Get Advice On Up-front Bonuses, Forgivable Loans, and Promissory Notes
Many experienced brokers and financial advisors receive transitional compensation upon becoming employed at a new brokerage firm. The amount of the bonus is usually dependent upon the brokers "trailing 12" months of revenue he produced at his prior employer. Some bonuses are enhanced by the amount of client assets the broker causes clients to transfer when they open accounts with his new employer and the amount of commissions generated in those new accounts in a certain period of time. These bonuses are usually coupled with promissory notes or forgivable loan agreements with terms where the amount of the up-front bonus is reduced and reportable as income on a monthly or yearly basis. Unfortunately, many of these agreements are never negotiated by brokers and financial advisors to exclude repayment by reason of death, disability, or termination without cause. You should not be required to repay the bonuses when your employment terminates involuntarily without cause. It takes skillful attorneys to read and understand the fine print of these agreements, to prevent overreaching and other misconduct by the brokerage firm, and to assert the defenses necessary to avoid repayment of those bonuses. The Law Offices of Robert Wayne Pearce P.A. will review agreements with prospective employers and advise you beforehand about your rights, and if necessary, assist you in avoiding payment when it is unjust.Free Initial Consultation With Attorneys Who Can Handle Your Contract Disputes Problems
The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in broker and financial advisor employment contract disputes and constantly strives to secure the most favorable possible result. Mr. Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case.
For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, including contract disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami, and West Palm Beach, Florida and elsewhere.