In a deed, a grantee may agree to do something or refrain from doing certain acts. This agreement will become a binding contract between the grantor and the grantee. An example would be an agreement to maintain fences on the property or that the property will only be used for residential purposes. This kind of covenant is binding, not only between the grantor and the grantee, but also runs with the land. This means that anyone acquiring the land from the grantee is also bound by the covenant of the grantee. A covenant that provides that the grantee will refrain from certain conduct is called a restrictive or protective covenant. For example, there may be a covenant that no mobile home shall be placed on the property.
A restrictive or protective covenant may limit the kind of structure that can be placed on the property and may also restrict the use that can be made of the land. For example, when a tract of land is developed for individual lots and homes to be built, it is common to use the same restrictive covenants in all of the deeds in order to cause uniform restrictions and patterns on the property. For example, the developer may provide that no home may be built under a certain number of square feet. Any person acquiring a lot within the tract will be bound by the restrictions if they are placed in the deed or a prior recorded deed. Also, these restrictive covenants may be placed in a document at the outset of the development entitled "Restrictive Covenants," and list all the restrictive covenants that will apply to the tracts of land being developed. Any subsequent deed can then refer back to the book and page number where these restrictive covenants are recorded. Any person owning one of the lots in the tract may bring suit against another lot owner to enforce the restrictive covenants. However, restrictive covenants may be abandoned or not enforceable by estoppel if the restrictive covenants are violated openly for a sufficient period of time in order for a Court to declare that the restriction has been abandoned.
Restrictive Covenants For Independent Contractor In Riverside
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FAQ
1. What is the 2 year contractor rule? The 2 year contractor rule is a provision that limits the amount of time a contractor can work for a company as an independent contractor without being considered an employee. It typically states contractor works company 2 years, may deemed employee legal tax purposes.
Because independent contractors operate independently and engage in their own business, they are not subject to the same restrictions as employees. As such, non-compete agreements are less likely to be enforced against independent contractors in California.
So, do non-compete agreements apply to independent contractors? Yes, they absolutely do. I would encourage you if you're drafting them to consult with an attorney as you do that.
One of the most common restrictive covenants is not to do or keep anything on the property that could be a nuisance to the neighbouring properties. This is general covenant that could cover a wide variety of actions, to try to keep the area a pleasant place to live.
As with many things, however, California is different. California law explicitly voids all non-compete agreements for employees and independent contractors. These agreements are simply not enforceable, no matter how reasonable they may seem.
For example, California Labor Code Section 2870 (as discussed above and which has counterparts in a number of other states) seeks to protect employees and independent contractors by imposing limits on invention assignments.
In California, the relationship between businesses and independent contractors is subject to strict legal standards. As of January 1, 2025, having a written contract with certain types of independent contractors is required by law.
The primary remedy for breach of a Restrictive Covenant is a permanent injunction to restrain the breach. However, the courts have jurisdiction to award damages instead of an injunction.
Recently, Governor Gavin Newsom signed two bills into law that amend the California Business and Professions Code to further strengthen California's laws against restrictive covenants. Effective January 1, 2024, the ban on virtually all non-compete clauses is now codified.