Non-compete Clause With Independent Contractor

State:
Multi-State
Control #:
US-AHI-053
Format:
Word
Instant download

Description

This form contains samples of non-compete and confidentiality clauses. These clauses can be included in the employees paperwork.

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FAQ

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.

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.

Here are some tips:What is a noncompete agreement?Keep the group small.Keep the restrictions reasonable and narrow.Provide consideration for the agreement.Get it in writing.Prepare multiple versions if necessary.Concede choice of law/forum.Provisions to include.

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More info

Even if you remain classified as a contractor, a noncompete clause may not be enforceable. Noncompete clauses aim to protect the business from having a former employee conduct business that would be in competition with their own.This Agreement is not a contract of employment.

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Non-compete Clause With Independent Contractor