A person falls into the category of an independent contractor (i.e., contractor, subcontractor, dentist, doctors, lawyers, etc.) if they provide goods or services, but the payer has the right to control or control the outcome of the work. The payer has no control over how the work is done or what is done. In addition, the independent contractor does not regularly work for an employer and the income of individuals who fall into the category of “independent contractors” is subject to self-employment tax because it is considered in the business for itself. If you are an independent contractor, you may be asked to sign a non-compete clause or the employer may include a non-compete obligation in your employment contract. While a non-compete obligation can vary in structure, it usually prevents you from starting a competing business or working with another company for a certain period of time after your employment ends. Complications can arise with non-compete obligations if you are considered an independent contractor and not an employee. If you require assistance with non-compete obligations or other employment issues, please contact our office at 703-668-0070 or www.berrylegal.com to schedule a consultation. Please also like and visit us on our Facebook page. For example, employers sometimes try to enforce non-compete obligations, but are then sued for benefits and wages for employees based on the assertion of control under the non-compete agreement. Employers could be held liable for wages, fines or benefits if an employee is “wrongly classified” as an independent contractor. This fact gives employers food for thought when enforcing non-compete obligations against their independent contractors.
Even if you continue to be classified as a contractor, a non-compete obligation may not be enforceable. Independent contractors are expected to be experts in their chosen field and are likely to work for multiple companies at the same time. If a company tries to enforce a non-compete obligation, your ability to find work may be affected. If a non-compete clause unduly restricts your ability to work, most courts in the United States will not enforce it. Since non-compete obligations can be of dubious validity when applied to independent contractors, there are other ways to legally protect your business. The following agreements may be helpful: In Connecticut, as in many states, there are no laws or regulations that specifically address non-compete obligations outside the medical profession. The question of whether a non-compete obligation is enforceable against an independent contractor is currently not specifically addressed under Connecticut law. Our courts do not formally distinguish between non-compete obligations with employees and independent contractors. That said, the five-factor analysis described above varies when applied to the independent contractor relationship.
When courts consider the fourth factor, the impact of non-compete obligations on employee career opportunities, our courts must consider that, by definition, independent contractors are expected to serve more than one client at a time. This makes them “independent”. Despite this obvious basis for rejecting all non-compete obligations applied to independent contractors, our courts will often find non-compete obligations enforceable. For example, non-compete obligations have been maintained in circumstances where an independent contractor uses its position with the employer to obtain information to create a competing business for itself. Non-compete obligations are special contracts between employers and their employees that prohibit employees from engaging in business activities that compete with their former employers, usually for a certain period after the end of an employment relationship and usually in a specific geographical area. Often referred to as “restrictive agreements,” these agreements allow employers to prevent a former employee or contractor from earning a living in their business after the employment relationship has ended. One of the main problems with the requirement for independent contractors to sign non-compete obligations is that independent contractors are different types of workers. An independent contractor is essentially his own business. In general, an employer cannot force an independent contractor, which is a separate business, to lose their business simply because they transferred business to the independent contractor. Independent contractors may seem similar to employees (and many employers cross the line when it comes to who they can classify as independent contractors), but there are different loyalties and obligations.
The more a person is part of an employer`s business or organization by signing such non-compete agreements and assuming loyalty and other obligations, the more likely it is that the person can be considered an employee. .
