Legal Question in Business Law in New Jersey
In NJ independent contractors can't sign non compete clauses. If a business is a middle man type service that connects a client with a contractor, what can be done to prevent the middle man from being cut out if the contractor and client conduct dealings without him? Ie: CompA makes corn bread, CompB sells corn that it buys from farmers, CompC is a farmer that sells corn. What protection does CompB have from CompA and CompC doing business together without CompB?
2 Answers from Attorneys
Your premise is not correct. Independent contractors can sign contracts of any type, including those that include non-compete clauses. The situation you describe could be covered adequately by a written contract signed by all parties. If violated, enforcement could be sought in Court.
Keep in mind that this answer is given based on the scanty information you have provided. My answer may change based on other information. Further, you cannot rely on this answer since you have not retained me as your attorney. To be sure that you have accurate information and direction, you should consult with an attorney. Feel free to call me at 856-546-8010. Mention Law Guru and your first consultation will be "no charge". Good luck. Rob Gleaner
I agree with my colleague. What you are describing is really a non-circumvention provision and is not the same as a non-compete.
Further, while NJ is proposing legislation that would greatly limit the enforceability of non-competes they are still enforced when reasonable an under the right set of facts and it would make no difference whether you are an IC or employee in this context.Of course, an employer set on enforcement may choose to file a legal action even if they do not have a good claim forcing the defendant to answer.
You should discuss your options with a lawyer in private. If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
Kind regards,
Frank
www.LanternLegal.com
866-871-8655
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.
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