Subcontractor Agreement Non-Compete Clause

However, there are many types of non-compete clauses that a court can impose on an independent contractor. For example, a company could include a provision prohibiting the independent contractor from creating a competing business while completing the work for the company that hired it. In addition, a company may include confidentiality agreements, confidentiality clauses and non-formal notice clauses. Non-invitation clauses may prevent an independent contractor from requesting current and potential staff or customers. A business lawyer can help you determine which arrangements are best suited to your independent contract. Non-compete bonds are governed by Florida Statute 542.335. A non-compete clause may prevent an independent contractor from working for a competitor for the duration of the worker`s charge of the business for a certain period after the contract expires. For the independent contract to be applicable, Florida Statute 542.335 states that a court considers that 6 months or less is appropriate and that 2 years or more is inappropriate. When compiling your independent contractual agreement with a non-compete clause, it is very important that you understand the law and the contract. What for? In cases where one might wonder whether a contractor is an independent worker or contractor, a non-compete clause could, in some cases, be evidence of an employment relationship. When developing an independent contract contract, a company must compensate for the contract in order to clarify that the independent contractor is indeed independent, while developing a robust non-competitive clause that will support your company`s legitimate business interests. In order for a worker to be considered an independent contractor, he must have control over how he does his job.

Therefore, the independent contractor should not be tied to location, hours, etc. The independent contractor usually provides its own tools, computers, phones, etc. Other considerations may also be taken to determine whether a worker is a good faith independent contractor. If the language of the agreement does not specify that the contractor is independent, the relationship could be called into question and the company could face additional employment taxes, which could have significant financial consequences. In an employment contract, the employer is free to introduce a non-competitive scheme for all workers in high positions. However, a non-compete clause may be structured differently, it usually prevents an employee from working for another company or from setting up a competing business shortly after the end of the employment. This is an advantage for a company that has devoted a great deal of time and effort to acquiring expertise and knowledge for this employee. A Memorandum of Understanding is a description of a transaction being negotiated, with agreements on how the process will progress. Learn more about what is included in a letter of intent and how to write one. A non-compete independent contractor is a document protecting a company that decides to pass on confidential information to another entity or person. A non-competition clause stipulates that shared information (such as trade secrets, customers, employees, etc.) cannot be disclosed or used against the company. The information is not published for a certain period of time.

The independent contractor is prohibited from being a competitor in the same company in the same market. The duration of the non-competition agreement is, if any, subject to local state law. However, a non-competition clause is one to two years.