Independent Contractor Non-Compete Agreement

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Updated May 14, 2022

An independent contractor non-compete agreement prohibits a current or former contractor from working in the same industry for a specific time period and geographical area. This is common when trade secrets are revealed to a contractor that is essential to completing the work.

This agreement may also be used for a subcontractor.

What Should be Included

  • Non-Compete Terms. If the contractor will be prohibited from working in the same industry or just specific competitors.
  • Term. How long the non-compete will last. Most States limit this from 2 to 5 years.
  • Geography – If the contractor will be prohibited from working in the field broadly or in a specific market area (e.g. 50 miles from the closest store).

Is a Non-Compete Enforceable with Contractors?

Yes, a non-compete is enforceable against contractors except in California, North Dakota, Oklahoma, and Washington D.C.

Related Forms


Independent Contractor Agreement – Used to hire and set the parameters when employing a contractor.

Download: Adobe PDF, MS Word, OpenDocument

 

 


Independent Contractor Non-Disclosure Agreement (NDA) – Used in States where a non-compete is illegal (California, North Dakota, and Oklahoma). Prohibits a contractor from sharing proprietary and confidential information.

Download: Adobe PDF, MS Word, OpenDocument