Non-compete enforceable for 1099 contractors?
February 9, 2012 1:57 PM   Subscribe

Where can I find the best information on how enforceable a non-compete agreement may be in a 1099 situation? The trick: I don't have a copy of the agreement that was signed.

Can a company enforce a non-compete agreement if 1) the parties signing are not all employees and 2) there was no additional consideration paid outside of the normal 1099 payments? My friend is working on a project for a company that is not going well. My friend would like to potentially take aspects of that project and develop a business on his own, but the company made him sign a non-disclosure and non-compete at the start of the project. All the people developing the project signed at once (some employees, some outside contractors). He never received a copy, and asking for one now would raise suspicions. Is there a way to research how people in this situation have countered non-competes in the past? Sorry - I wish I had more specifics to provide.
posted by slo to Law & Government (6 answers total) 1 user marked this as a favorite
Where do you live?
posted by speedgraphic at 1:59 PM on February 9, 2012

Response by poster: New York
posted by slo at 2:04 PM on February 9, 2012

The answer based on the information available: get a lawyer.

The best answer: bring a copy of the agreement to a lawyer, because they are only going to be spitballing otherwise.

It is highly difficult, if not impossible, to answer your question in a useful manner without you disclosing information which you should only disclose to a lawyer in the context of an attorney-client relationship.

Ultimately you're not asking "what's some good information about enforcing a non-disclosure and a non-compete" you're asking if this specific non-disclosure and non-compete is likely to be successfully enforced against your friend if your friend takes information X, some of which he got from his current employer, and goes and does Y thing with it for money somewhere else.

You should not tell us what X and Y are, for obvious reasons. However, it should be equally evident that there's not a lot to go on.

If you really want to do this on your own, go to the law library of a nearby law school and explain this situation to the reference librarian. They will be helpful and probably friendly (law librarians defy two sets of stereotypes!) They may have some books that discuss non-competes in general terms, and they may even be able to help you find current case law on the subject. But even though you can do this research on your own, it's almost certainly not going to be an efficient use of your time.

Good luck. I don't mean for this to be unhelpful, but there it is.
posted by gauche at 2:11 PM on February 9, 2012 [2 favorites]

But even though you can do this research on your own, it's almost certainly not going to be an efficient use of your time.

And, I should add, if you do this research on your own, it is illegal for you to give your friend legal advice -- which this would be -- unless you are admitted to the practice of law.
posted by gauche at 2:14 PM on February 9, 2012

Ianal tinla
"Take aspects of" isn't ethical unless you have permission
posted by forforf at 4:43 PM on February 9, 2012

Best answer: Probably the best case scenario is if the non-compete has some clause that makes it binding upon completion of the project since the project is getting derailed. Can he ask a trusted colleague for a copy of their non-compete?
posted by dgran at 5:58 AM on February 10, 2012

« Older Make my iMac and display equal height   |   What are some fun things to do with a digicam I... Newer »
This thread is closed to new comments.