Legal Question in Business Law in New York
Employment/Indepenent Contractor Agreement
If I hire an employee or independent contractor I would like to protect my client list from being solicited and also establish the nature of the relationship between us for employment terms and tax matters. What kind of agreement would I need and would that agreement give me the protection I seek? Are there are any risks or non-enforceable provisions in these kind of agreements?
2 Answers from Attorneys
Re: Employment/Indepenent Contractor Agreement
There is some contractual protection you can obtain through a carefully drafted contract (either employment offer letter or service agreement).
Both from the perspective of non-competition (non-solicitation, non-disclosure and protection of trade secrets) and from that of tax classification, however, the contractual language would be subject to some very definite statutory and common law limitations you cannot avoid through drafting alone. The proper agreement would take a careful account of the actual circumstances in which you employ this person.
For example, you cannot turn someone who clearly does work under your control and supervision in your office using your office equipment into an independent contractor no matter what you say.
Non-compete (restrictive covenants) should be reasonable in terms of scope, length and territory and may be rendered unenforceable if used improperly.
You would do well to get advice and drafting done by a business lawyer.
The above reply is in the nature of general information, is not legal advice and should not be relied on as such.
Re: Employment/Indepenent Contractor Agreement
The protections you seek can be achieved via an emplyment agreement or other similar agreement that would incorporate non compete and or non solicitation clauses and there are several other types of protection involving the disclosure of trade secrets as well. We regularly draft these types of contracts and This area of law is our specialty, however, we would need some more information before making a complete and proper determination. You are welcome to contact us for a free consultation.
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