This article posted on our partner site Mondaq.com outlines that if an employer attempts to hire someone as an independent contractor instead of an employee for benefits such as Obama care and minimum wages, they should not include a non-competition clause.
A non-competition clause is associated with an employment contract and if one intends to hire an independent contractor, the contract might be characterized as an employee if such clause is included. If one wants to protect their information but hire an independent contractor, one should use a confidentiality agreement, but NEVER a non-competition.
This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!