"Are non-compete agreements binding on independent contractors?" | Sklover Working Wisdom
Question: I worked as a 1099 independent contractor, and not as an employee. I was paid no salary, but only commissions. While I did that, I also signed a non-compete agreement. I left there and I am now working for a different company, also as an independent contractor (not an employee.) The former company is now threatening me and this new company with a lawsuit, because they say I am violating the non-competition agreement, which says I can't work for a competing company (a) within 240 miles, and (b) for two years. Is this legal? Mary (City, State not noted) Answer: Mary, you may, indeed, have a non-compete problem: But, then again, there are many ways "out" of a non-compete problem: 1. A non-compete agreement (sometimes called a "non-competition" agreement) between a company and an independent contractor is presumptively binding and enforceable. A non-compete agreement is just what its name implies: an agreement between two parties in which one