Yes. The non-compete clauses in my NY consulting contracts always focus on protecting the consulting firm's cut of the billing. A noncompete agreement would essentially block a contractor from landing another side job, even if you don't intend to hire them as an employee.A noncompete agreement is a legally binding contract that prohibits an independent contractor from competing with the company who engaged it. Non-compete agreements for independent contractors forbids them to work for your competition for a specific period after employment. If you have been asked to sign a noncompete agreement as an independent contractor, such an agreement may not be enforceable. The Final Rule prohibits an employer from entering into, or attempting to enter into, a noncompete clause with a "worker" (including, e.g. A noncompete agreement, or covenant not to compete, is a form of contract where one party promises to not engage in or to refrain from a specified action. However, with recent legal changes and evolving labor laws, these agreements are facing increased scrutiny. Employment Based Noncompete Agreements May Soon be Dead. The law does not apply to independent contractors and does not limit or regulate non-solicitation agreements.