North Dakota Contract with Independent Contractor to Teach Insurance Courses with Covenant Not to Compete and Confidentiality Agreement

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An independent contractor is a person or business who performs services for another person pursuant to an agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays his/her own Social Security, income taxes without payroll deduction, has no retirement or health plan rights, and often is not entitled to worker's compensation coverage.


There are a number of factors which to consider in making the decision whether people are employees or independent contractors. One of the most important considerations is the degree of control exercised by the company over the work of the workers. An employer has the right to control an employee. It is important to determine whether the company had the right to direct and control the workers not only as to the results desired, but also as to the details, manner and means by which the results were accomplished. If the company had the right to supervise and control such details of the work performed, and the manner and means by which the results were to be accomplished, an employer-employee relationship would be indicated. On the other hand, the absence of supervision and control by the company would support a finding that the workers were independent contractors and not employees.

Another factor to be considered is the connection and regularity of business between the independent contractor and the hiring party. Important factors to be considered are separate advertising, procurement of licensing, maintenance of a place of business, and supplying of tools and equipment by the independent contractor. If the service rendered is to be completed by a certain time, as opposed to an indefinite time period, a finding of an independent contractor status is more likely.

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  • Preview Contract with Independent Contractor to Teach Insurance Courses with Covenant Not to Compete and Confidentiality Agreement

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FAQ

The only restrictive covenants that are enforceable post-employment are clauses prohibiting solicitation of customers or employees, disclosure of confidential information, and misrepresentation by the ex- employee as acting in a capacity other than that of a former employee (see Question 8).

Typically, courts tend to enforce restrictions of between 6 and 12 months, depending upon the seniority of the employee concerned and their access to confidential information and clients. This is subject, of course, to the covenants being reasonable and necessary to protect a legitimate business interest.

How do I get around a non-compete agreement?Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.More items...

A covenant not to compete, also called a "nompete agreement" or "non compete clause," is an agreement where one party promises not to compete with the other party in a specified area for a certain period of time. A covenant not to compete can be found in an employment contract or a sale of business contract.

By Janet A. In California, North Dakota, the District of Columbia, and Oklahoma, non-competes are either entirely or largely unenforceable as against public policy. Other states, including Maine, Maryland, New Hampshire, Rhode Island, and Washington, have banned non-compete agreements for low-wage workers.

This is usually 6 months, but can sometimes be 3 or even 12 months depending on your seniority.

North Dakota allows businesses to protect trade secrets, but it does not allow non-compete contracts, although the line between a trade secret and simply a similar line of work can sometimes be blurry.

You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.

Courts do not enforce illegal agreements. Prior to 2019 many non-competes contained illegal clauses which expanded beyond a city or county. The contract language might in fact be legal after 2019.

Even though North Dakota is adverse to non-compete agreements, they are still allowed in limited applications. In 2019, the North Dakota legislature expanded the allowed application of non-compete agreements. Non-compete agreements are generally governed by North Dakota Century Code § 9-08-06.

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North Dakota Contract with Independent Contractor to Teach Insurance Courses with Covenant Not to Compete and Confidentiality Agreement