Yes. The non-compete clauses in my NY consulting contracts always focus on protecting the consulting firm's cut of the billing. If you have been asked to sign a noncompete agreement as an independent contractor, such an agreement may not be enforceable.Contractors cannot be bound to a non-compete that exceeds the term of their contract. New York's legislature passed a bill that, if enacted, will substantially prohibit employers from entering into noncompetition agreements with their employees. A noncompete agreement is a legally binding contract that prohibits an independent contractor from competing with the company who engaged it. In the Matter of NonCompete Clause. There is no formal written contract between the registrant and the foreign prmcipal.