Independent Contractor Agreement With Non Compete Clause In San Antonio
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If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
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FAQ
Texas will enforce a non-compete agreement if it meets certain criteria: It must be included with another agreement (such as an employment offer), and be in exchange for “consideration” (i.e. something in return, such as specialized training or confidential information).
As previously reported (Dentons Alert), the US Federal Trade Commission (“FTC”) issued a regulation earlier this year that effectively bans most non-competes for employees and independent contractors (the “FTC Rule”). The effective date of the FTC Rule is September 4, 2024.
Non-compete clauses will likely be unenforceable if an employee is misclassified as an independent contractor. Typically, independent contractors are experts in their chosen field and can work for multiple companies. They do not have the same benefits as employees and manage their affairs independently.
The answer is: Yes, they can be. Texas law makes non-compete agreements enforceable if they are: Accompanied by or part of an otherwise enforceable agreement; Supported by valid consideration (ie.
Add information about the parties involved. Describe the terms of the Non-Compete Agreement, such as the length and area of the restriction. If necessary, you can include a non-solicitation clause. Add a confidentiality clause.
In some cases, a technical defect (such as the employer not signing the agreement) can affect enforceability. Finally, the employer's conduct (e.g., unclean hands, or conduct inconsistent with enforcement) can sometimes provide the employee with a good way out of a noncompete.
They are enforceable under the Texas Business & Commerce Code and upheld by the Supreme Court of Texas. An enforceable non-compete agreement must have reasonable limits in time, place and scope.
Every state has its own law regarding the use of non-competes. For example, in California, they are deemed illegal, except when selling a business or a shareholder's stock or dissolution of a partnership; while in Florida, they are allowed but are subject to strict scrutiny.
The following are the most common ways to get out of a non-compete agreement: Determine that the terms of the contract do not in fact prevent you from a desired course of action. Recognize when a non-compete contradicts the law. Negotiate a release agreement with the involved parties. Ignore the agreement.
Even workers labeled as “independent contractors”—who should have the freedom to work for multiple clients—are often required to sign non-competes that limit where they can work. Employers often present non-competes as a “take it or leave it” contract, forcing workers either to sign or forego employment.
