Non-compete provisions within independent contractor agreements are often challenged as unenforceable under the first prong of the above analysis. Finally, non-raiding agreements are drafted to prevent an employee from soliciting other employees to join a rival competitor or newly established business.Noncompete agreements are generally enforceable against independent contractors if the clause reclassifies them as employees. Under the final Noncompete Rule, the FTC adopts a comprehensive ban on new noncompetes with all workers, including senior executives. On April 23, 2024, the US Federal Trade Commission voted 32 to finalize and promulgate a rule banning most noncompete clauses in employeremployee contracts. Essentially, noncompete clauses limit an employee's opportunity to excel in whatever skill or trade they're familiar with. I fully support the proposed FTC rule to ban noncompete agreements in the interests of patients, healthcare workers, employees, and fair trade.". Non-compete agreements are often unenforceable against independent contractors because this would cause the business to forfeit its own profit and prosperity. Employee seeking to avoid a non-compete agreement may file a lawsuit in a California court, seeking a declaratory judgment invalidating the same provision". You may be asked to sign a noncompete agreement for your job as part of your contract.