Updated August 08, 2023
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: 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: PDF, MS Word, OpenDocument