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Do non-compete agreements apply to independent contractors?

... It Depends...

In general, non-competes are enforceable for independent contractors the same way they are for employees. In other words, whether you can enforce one with a contractor would depend upon the extent to which your state recognizes and enforces non-competes in general.

In California for example, non-competes are prohibited, and therefore are unenforceable under all circumstances. In Pennsylvania, non-competes are generally enforceable if their purpose and the restrictions they place on the employee are reasonable.

Enforceability aside, you have to be careful about having independent contractors sign non-compete agreements because it calls into question their status as an independent professional. Just because you say someone is an independent contractor doesn’t necessarily make it so.

If your relationship with that contractor is ever called into question by a government entity, the fact that you had them sign a non-compete is going to make it difficult to prove that they’re not an employee.

Generally speaking, companies and independent contractors alike should avoid non-competes if possible.

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