I am an Independent contractor.
Started working for a company as an Independent contractor. Now a few months later they finally created an Independent contract for us to sign.
One clause that stood out the most states that if the contract is terminated at any time, I cannot practice or operate similar business within 5 miles of any of their locations for a period of 2 years after termination.
Can this hold up in court? They said their laywer said this was legal to put in the contract.
If i understand correctly, being an independent contractor and being classified as such while performing work for this specific business shouldn't stop be from performing similar work for others as well. If they try to control that, it could classify me as an employee instead.
Nothing in this line of business is proprietary. I am using my licensure which I got before joining them and my expertise to provide mental health services to clients that call that business and seek hep.
Everything I've read so far says that the clause won't hold up in court but I'm not willing to take that chance.
I'd love to keep working with them and have no intention of competing but the clause and their unwillingness to omit it from the contract has led me here seeking advice.
1 Answer from Attorneys
Hello. You do have cause to be concerned that this clause is included in the contract. This is highly irregular, in my opinion. Signing this will put a dent in your revenue earning capability in the area. The terms of the contract should make it difficult for the company to terminate the contract, without compensating you. I suggests you have legal representation with this. I would not "go it alone".
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