Las Vegas, NV asked in Employment Law and Contracts for Nevada

Q: I recently signed a work contract with a company, but I wish to leave. I am a 1099 worker, can they sue me?

I signed neither a W9 nor W4 form, the contract states that I must work exclusively with the company for 6 months, and cannot work with a competing business or open my own within 3 years of working for them. I thought nothing of it when I signed it, but I am, according to the document, a 1099 independent contractor. An exclusivity agreement seems to contradict the title of independent contractor. Furthermore, my training is very specific and I invested in my own education, it was not paid for by the company. The rate of pay at this company is a commission rate below what minimum wage would be, so restricting me from work is extremely burdensome. I do not think that the contract I signed is enforceable because it seems to have been written for an employee, without the responsibilities on behalf of the employer. I intend to quit this "job", I would like to know if they have grounds to sue me for working in my field. Also, at this point I have not received any form of compensation.

Related Topics:
1 Lawyer Answer

A: Non-compete clauses are common in independent contractor agreements. Otherwise you could work for them and take their client list and then go out on your own. So, there is a high probability it would be enforceable, at least in part. Most states though will limit them to reasonable restrictions, and it does not sound like there is a geographic limit to the contract.

Also, if you move to California, non-compete agreements are basically void on public policy grounds, so you may be able to open a business there.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.