4 ms·

Is that true? If I hire someone to build a website for me, am I forbidden from getting a non-compete to protect against them launching another website for the s

by lupire 4y ago

Is that true? If I hire someone to build a website for me, am I forbidden from getting a non-compete to protect against them launching another website for the same business?

Retric 4y ago
Independent contractors are treated differently than small consulting firms here: https://www.weisbergcummings.com/are-non-compete-agreements-enforceable-against-independent-contractors/ https://www.weisbergcummings.com/are-non-compete-agreements-... Is a Non-Compete Clause Enforceable? For an independent contractor, non-compete clauses could reclassify you as an employee. A non-compete for contractors can actually be an important factor in determining whether a worker is truly an employee rather than a contractor. If an independent contractor is reclassified as an employee, the company could be subjected to penalties, workers compensation insurance and overtime pay. 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. If a non-compete clause unreasonably restrains your ability to work, most courts in the U.S. will not enforce it. Non competes between firms are possible, but given extreme scrutiny due to antitrust and other issues.
acdha 4y ago
It’s going to depend on the exact terms and value: if you pay someone well and it’s a narrowly targeted exception a judge is going to look at that more favorably than if you’re effectively telling them to move or find a different trade entirely. https://www.hg.org/legal-articles/dangers-of-having-an-independent-contractor-sign-a-non-compete-agreement-43937 https://www.hg.org/legal-articles/dangers-of-having-an-indep... notes a case which sounds similar to what you described where a non-compete was enforced because the company was able to demonstrate that the consultants had no prior experience in their industry and were using the skills and contacts they’d made on the job to launch a direct competitor.

by lupire 4y ago

Is that true? If I hire someone to build a website for me, am I forbidden from getting a non-compete to protect against them launching another website for the same business?

Retric 4y ago

Independent contractors are treated differently than small consulting firms here: https://www.weisbergcummings.com/are-non-compete-agreements-enforceable-against-independent-contractors/ https://www.weisbergcummings.com/are-non-compete-agreements-... Is a Non-Compete Clause Enforceable? For an independent contractor, non-compete clauses could reclassify you as an employee. A non-compete for contractors can actually be an important factor in determining whether a worker is truly an employee rather than a contractor. If an independent contractor is reclassified as an employee, the company could be subjected to penalties, workers compensation insurance and overtime pay. 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. If a non-compete clause unreasonably restrains your ability to work, most courts in the U.S. will not enforce it. Non competes between firms are possible, but given extreme scrutiny due to antitrust and other issues.

acdha 4y ago

It’s going to depend on the exact terms and value: if you pay someone well and it’s a narrowly targeted exception a judge is going to look at that more favorably than if you’re effectively telling them to move or find a different trade entirely. https://www.hg.org/legal-articles/dangers-of-having-an-independent-contractor-sign-a-non-compete-agreement-43937 https://www.hg.org/legal-articles/dangers-of-having-an-indep... notes a case which sounds similar to what you described where a non-compete was enforced because the company was able to demonstrate that the consultants had no prior experience in their industry and were using the skills and contacts they’d made on the job to launch a direct competitor.