Does the Texas noncompete statute apply to independent contractors as well as employees?
Although there is not much case law on this, the answer is almost certainly yes.
One case in particular out of the Fort Worth Court of Appeals dealt with a noncompete agreement dispute involving an independent contractor. Neither the company attempting to enforce the noncompete nor the independent contractor who signed it contended that the legal standard governing restrictive covenants should be any different when a contractor is involved.
Also, in its legal analysis, the court applied the same legal standards applicable to a contract signed by an employee.
Of course, whether you are an employee or an independent contractor, any contractual restraint of trade, to be valid, must meet certain statutory requirements. Under Texas law, the covenant not to compete must be supported by valid consideration.
Also, the restrictions must be reasonable. Thus, while binding an independent contractor is possible under the Texas noncompete statute, the usual statutory requirements must be observed.
- No, the Biden Administration Has Not Banned Non-Compete Agreements (4/24/2023)
- Are Non-Compete Agreements Enforceable in Texas in 2023? (4/12/2023)
- Sample Texas Noncompete Agreement (and Why Using a Free Template Is a Bad Idea) (3/2/2023)
- Calculating a Noncompete’s Geographic Scope: By Driving Distance, Or “As The Crow Flies”? (3/1/2023)
- Are Texas Noncompete Agreements Enforceable if the Employee Is Fired? (2/9/2023)
- Do I need to have my employees sign non compete agreements? (10/6/2017)
- Can A Noncompete Be Extended If It Is Violated? (2/3/2017)
- Who Can Get Attorneys’ Fees in a Non-Compete Action? (1/25/2017)
- Geographic Limitations on Texas Non Competes? (10/17/2016)
- Possible Tort Claim Not Sufficient Consideration for Noncompete in Texas (3/2/2016)