Legal Question in Employment Law in California

Re: legality of ''non-compete'' clause in independent contract agreement

This a complex question. First, you must determine your actual status. If you are truly an independent contractor, the company has the right to set forth terms in its agreement that may not be permissable for employees. Independant contractor status is discouraged in California and even though both the company and individual think they are creating a contractor relationship, it may not stand. In short, an employee may not be restricted in future employment opportunities, but an independant contractor may not have the same rights. I suggest that you seek counsel from a competant labor atttorney to determine your actual status before taking any action.

Re: legality of ''non-compete'' clause in independent contract agreement

Whether the covenant not to compete is enforceable will depend on many factors, including: where the contract will be entered into, what it says about the law under which the contract will be interpreted, where the work will be performed, and what the limits on competition are. Generally, however, covenants not to compete have to be very, very narrowly drawn to be enforceable in California.

I wouldn't sign the agreement with the non-compete provision without letting counsel review the actual language of the agreement. If you simply cross out the offending language and send it back, they may not retain you. There is a case in California stating that an employer may not legally refuse to hire an employee who refuses to sign an unenforceable non-compete clause. If the clause you are being asked to sign is, in fact, unenforceable, you may take some comfort from this case. However, it still remains an open question whether the case would be applicable in an independent contractor relationship.

Long answer to a short question, but, if the contract is important to you, I really do think you should have an employment lawyer take a look at it.

Pete Lareau