Q: Can 1099 employers be held to a noncompete clause?
Earlier this year I signed a contract containing a non-compete as a 1099 worker. The job is not working out due to not receiving adequate referrals from the company to financially sustain my responsibilities and livelihood. I am seeking employment elsewhere and am trying to figure out if it’s enforceable since I’m 1099, but also due to the conditions. As a clinical social worker, I provide therapy. That is my speciality. The noncompete essentially tells me that I cannot do anything related to my degree unless I completely move to a different area. I’m feeling stuck. In also trying to figure out if I’m incorrectly classified as a 1099, because it feels like I’m treatment more like an employee.
A: You have identified at least 2 important issues. First, you may or may not have been properly classified. Second, your non-compete may or may not be enforceable. To some degree, the second might depend on the first. Many non-competes are not enforceable in North Carolina because they are not sufficiently tailored to the specific circumstances. However, an attorney would need to review the agreement(s) and collect additional information in order to help you evaluate your rights and responsibilities.
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