Non Compete Clause For Independent Contractors
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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.
Non-compete/non-solicitation agreements enforce against a former employee, agent, or independent contractor are presumed reasonable if six months or less in duration, and unreasonable if more than two years in duration.
You agree that at no time during the term of your employment with the Company will you engage in any business activity which is competitive with the Company nor work for any company which competes with the Company.
Will the contractor service other clients? An exclusive relationship is an extremely strong indicator that the contractor is really an employee. In a genuine contractor relationship, the contractor is permitted to market to and service other customers?including the company's competitors.
Florida law provides that with respect to non-compete restrictions on independent contractors, there is a presumption that 6 months or less is a reasonable length of time and more than 2 years is unreasonable. However, this presumption can be rebutted.
