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Independent Contractor Resists Enforcement of Non Compete

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.

Independent Contractor Non Compete Case Study 2: Background

Client E worked for a building maintenance company and was classified as an independent contractor. About a year into this relationship, the company insisted that he sign a non compete. Client E objected to the non compete, and was told he would be terminated if he didn't sign the agreement. The company offered him no additional compensation or benefits for signing the agreement.

Client E eventually resigned his position to start his own handyman service company. When he started contacting potential customers, he learned that his former employer had told them all he was prohibited from providing services because of his non compete.

Independent Contractor Non Compete Case Study 2: Strategy and Outcome

We worked with Client E to gather relevant documents about his employment and independent contractor agreement. We determined that he had a claim for improper classification as an independent contractor and for unpaid wages. We also determined that he could make an interference claim against his former employer for the untrue statements being made to customers.

Finally, we concluded that the non compete was unenforceable because of his independent contractor status and because they had not offered him any compensation in exchange for signing the agreement.

We outlined these claims in a letter to the employer and stated that we would file a lawsuit if we did not receive a satisfactory response. The employer responded, and we were able to resolve the case with payment to Client E and a release from the non compete provisions.

Independent Contractor Non Compete Case Study 2: Takeaways

There are a number of lessons to be learned from this example that may help you if you are facing a dispute over a non compete agreement

• If you are an independent contractor, you may have a defense to the non compete enforcement. You also may have separate counterclaims for damages which are useful in resolving the dispute.
• If you are asked to sign a non compete after you start employment, your employer may not be able to enforce it. This is now specifically stated in Massachusetts law. It remains an available argument even if you signed your employment contract before the new law took effect.
• Most states have independent contractor laws that are less strict than Massachusetts. This means if you have an out of state employer, they may not understand the limitations of Massachusetts employment law. This too can be helpful if you find yourself in a non compete dispute.
  

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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, give us a call at  781-784-2322, or fill out our web form  to let us know a little more about your situation.

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