Non Compete Unenforceable Against Independent Contractor
Jason worked as a contractor for a telecom provider. He worked in Massachusetts but his employer was out of state. The employer classified him as an independent contractor but required that he sign a non compete.
The employer sent Jason a notice of termination of his contract while he was still owed money for services. The employer then objected to Jason taking a new job with a competing company based on the non compete clause in his independent contractor agreement. This left Jason without a job, owed money, and restricted from being able to replace his income in the field in which he had expertise. In addition, the employer was located out of state and could have brought a lawsuit in that jurisdiction. This meant that if he took the new job without taking other action, he might find himself defending a lawsuit in a state far from Massachusetts, at substantial cost and inconvenience. In order to be considered an independent contractor in Massachusetts, you have to be free to provide services to others. This can be inconsistent with a non compete agreement. Below is an example of a non compete case we defended for an independent contractor.
Non Compete SolutionWe first attempted to negotiate a resolution with the employer. We laid out the argument that the agreement was unenforceable against an independent contractor. The agreement itself also said that if they terminated his engagement without cause they would waive the non compete.
Nonetheless, the employer insisted on threatening Jason with a lawsuit if he accepted the job he had been offered. We filed a complaint for declaratory judgment seeking an order that the non compete provisions were unenforceable and/or waived. We also brought claims under the independent contractor law, and claims for overdue and unpaid wages. After being served with the lawsuit, the employer agreed to settle. Jason was compensated for his unpaid wages and allowed to accept his new employment offer. |
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Postscript
Jason continues to work for his new employer today, and has enjoyed a successful career there for over ten years.
If you are in a similar situation, remember that you don't have to wait for your employer to sue you. Sometimes it is to your advantage to be the first one to go to court, as it was in this case. It is also always worth it to consult with an employment lawyer to find out if there is any other compensation or benefits due to you from your former employer, so that all issues can be resolved in one litigation and/or negotiation
If you are in a similar situation, remember that you don't have to wait for your employer to sue you. Sometimes it is to your advantage to be the first one to go to court, as it was in this case. It is also always worth it to consult with an employment lawyer to find out if there is any other compensation or benefits due to you from your former employer, so that all issues can be resolved in one litigation and/or negotiation
How We Can Help
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We have years of experience representing people in non compete lawsuits in Massachusetts state and federal courts, as well as responding to cease and desist letters, and we would be happy to help. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
