Non Compete For Contractors
Description
How to fill out Sample Noncompete Clauses?
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FAQ
However, you should not include an exclusivity clause. By definition, an independent contractor who is ?in business for himself or herself? may take on other assignments. An exclusive arrangement implies that the contractor depends economically on the company.
Independent contractors in Texas, and those who hire them, often wonder whether independent contractors can be bound by a non-compete agreement under Texas Law. The answer is yes. In Texas, there is no prohibition against binding an independent contractor to a non-compete agreement.
Under Texas law, the covenant not to compete must be supported by valid consideration. Also, the restrictions must be reasonable. Thus, while binding an independent contractor is possible under the Texas noncompete statute, the usual statutory requirements must be observed.
Here are some tips you can follow: Talk to a Lawyer. ... Consider the Scope of the Agreement. ... Limit the Scope of the Agreement. ... Exclude Certain Activities from the Agreement. ... Negotiate a ?Severance Package? in Exchange for Signing the Agreement. ... Don't Sign the Agreement If You Disagree or Don't Understand It.
A noncompete agreement is a binding contract that prevents an independent contractor from competing with the employer during the contract and a set period of time afterwards.
