Non Compete For Independent Contractor
Description
How to fill out Sample Noncompete Clauses?
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FAQ
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.
Therefore, non-compete agreements are often unenforceable against independent contractors because this would cause the business to forfeit its own profit and prosperity in simple exchange for a portion of its business.
Even if you remain classified as a contractor, a non-compete clause may not be enforceable. Independent contractors are expected to be experts in their chosen field and are likely working for multiple companies at once. If one company attempts to enforce a non-compete clause, your ability to find work may be affected.
Non-competition clauses are governed by Florida Statute §542.335. A non-compete clause can restrict an independent contractor from working for a competitor during the duration the worker is contracted with the company, and for a specific period of time after contract work ends.
1, 2022, pursuant to the recently enacted Freedom to Work Act (the Act). These changes include: $75,000 Noncompete Threshold: Employers are prohibited from entering into a covenant not to compete with any employee unless the employee's actual or expected annualized rate of earnings exceeds $75,000.
