Independent Contractor Work Agreement With Non Compete Clause In North Carolina
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In North Carolina, non-compete agreements are enforceable, but only under strict conditions. A valid non-compete must meet certain criteria, including being in writing, having a reasonable time and territory restriction, and being part of your employment contract.
For independent contractors, no prohibitions on working for a client's competitor, during or after the contractor is providing services to the client, are legal.
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.
Under the Noncompete Rule, the FTC adopted a comprehensive ban on new noncompetes with all workers, including senior executives. The final Noncompete Rule provides that it is an unfair method of competition—and therefore a violation of Section 5—for employers to enter into noncompetes with workers.
By definition, independent contractors can choose their products and cannot be punished for working for other employers. If your contractor wanted to hold you to a non-compete they would have needed to make you a W2 employee, not a 1099 independent contractor, and they would be subject to payroll tax and withholding.
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.
competition agreement (“noncompete”) prohibits an employee from working for a competitor or opening a competing business, typically for a certain period of time after an employee leaves a job.
A North Carolina Standard Clause limiting an employee's solicitation of employees and customers during the term of the employee's employment and for a specified period after the employment relationship ends. It is intended for use by private employers.
Take a non-competitive job or role outside your current employer's specialty. Prove your employer breached the contract to invalidate the non-compete clause. Argue that the non-compete is overly restrictive or not enforceable. Negotiate or prove no legitimate business interests exist to uphold the agreement.
Noncompetes are only enforceable to protect trade secrets or if an employee has an ownership interest in the business.