Independent Contractor Work Agreement With Non Compete Clause In California
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Yes, if you have signed one with your employer. However, non-compete clauses are operable only for a reasonable period of time only even if the clause mentions otherwise.
As with many things, however, California is different. California law explicitly voids all non-compete agreements for employees and independent contractors. These agreements are simply not enforceable, no matter how reasonable they may seem.
California's Noncompetition Law Does Not Mention Employees The employment context is included within this definition. So are independent contractors. To state this another way: California' noncompete law is not limited to employees. It applies to any contract.
If an independent contractor violates a non-compete agreement, the company that issued the non-compete contract may take legal action against them. They can file a lawsuit seeking damages, a court injunction prohibiting the worker from engaging in competitive activities, or both.
Even workers labeled as “independent contractors”—who should have the freedom to work for multiple clients—are often required to sign non-competes that limit where they can work. Employers often present non-competes as a “take it or leave it” contract, forcing workers either to sign or forego employment.
The exceptions to the rule pertain to existing agreements with senior executives, sale-of-business non-competes, and causes of action that accrue before the rule's effective date of September 4, 2024.
The ban covers all non-competes for U.S. workers (including employees and independent contractors) with limited carve-outs, and is subject to certain exceptions based on the FTC's statutory authority.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
The following are the most common ways to get out of a non-compete agreement: Determine that the terms of the contract do not in fact prevent you from a desired course of action. Recognize when a non-compete contradicts the law. Negotiate a release agreement with the involved parties. Ignore the agreement.
You cannot, unless the parties to the non-compete agreement agree to terminate the agreement in writing. You have not signed a non-compete agreement gratuitously unless it is a condition of your employment. You must have received valuable consideration for signing a non-compete agreement.