Can contractors work for competing companies?

Independent contractors are workers who are permitted to work for multiple companies, even competitors, at the same time. In addition, in many states, a non-competition agreement between a company and independent contractor may not even enforceable and therefore would not protect the company.

Do company policies apply to independent contractors?

Companies who don’t have independent contractors sign off on conduct policies – in any form – before they start are at serious risk of liability exposure. Studies have shown that individuals are much more likely to respect and abide by conduct rules if they are contractually bound by adhering to them.

Do non disclosure agreements apply to independent contractors?

A non-disclosure agreement for the independent contractor will legally prevent the contractor from disclosing or utilizing sensitive information obtained during the course of their contract work.

Can an independent contractor work for a competitor?

Independent contractors are workers who are permitted to work for multiple companies, even competitors, at the same time.

Is an independent contractor agreement unilateral?

There are two key types of non-disclosure agreements: unilateral and mutual. Independent contractor agreements, including confidentiality agreements, should be signed before you begin negotiations with an independent contractor.

Can an independent contractor be exclusive?

Many prospective contractors have told me that we are not allowed to have an exclusivity clause, as it would make our relationship one of employer and employee. In fact, it considers exclusivity-related issues to be “factors of less importance” in deciding whether a person is an employee or an independent contractor.

What does non compete agreement mean?

A non-compete agreement is an agreement between an employer and an employee in which the employee agrees not to use information learned during employment to enter into competition in subsequent business efforts. Next Up. Terms of Employment. Severance Package. Credit Agreement. Option Agreement.

How to defeat a non-compete agreement?

Typically,the only way to fight a non-compete agreement is to go to court.

It may be that your former employer has never sued another employee to enforce the non-compete agreement.

Usually the employer will be requesting a temporary injunction against you.

What is an example of independent contractor?

Independent Contractors. An attorney or accountant who has his or her own office, advertises in the yellow pages of the phone book under “Attorneys” or “Accountants”, bills clients by the hour, is engaged by the job or paid an annual retainer, and can hire a substitute to do the work is an example of an independent contractor.

What is an agreement not to compete?

A covenant not to compete, or a non-compete clause, is an agreement in which one party agrees not to work for the other party’s direct competition in a specified area for a certain amount of time.