TPR Firm - Can A Non-Compete Be Legally Enforced if You're Hiring 1099 Contractors instead of W-2 Employees as your Production Recruiters? - RecruitingBlogs2024-03-29T06:06:49Zhttps://recruitingblogs.com/forum/topics/tpr-firm-can-a-noncompete-be?commentId=502551%3AComment%3A561384&feed=yes&xn_auth=noOH MY GOD you girls are hilar…tag:recruitingblogs.com,2009-02-24:502551:Comment:5642902009-02-24T00:49:27.321ZMaureen Sharibhttps://recruitingblogs.com/profile/MaureenSharib
OH MY GOD you girls are hilarious and more than a million billion zillion times worth what I pay to be a member of RBC...<br />
<br />
<i>Permalink Reply by Sandra McCartt<br />
In San Franciso i could probably shoot my neighbor for killing my dog and get off on the grounds of justifable homicide...<br />
<br />
Reply by Heather Bussing 22 hours ago<br />
Actually in San Francisco and LA, it all depends on what you were wearing at the time. :><br />
<br />
Permalink Reply by Sandra McCartt 20 hours ago<br />
Or if it were a full moon , i had…</i>
OH MY GOD you girls are hilarious and more than a million billion zillion times worth what I pay to be a member of RBC...<br />
<br />
<i>Permalink Reply by Sandra McCartt<br />
In San Franciso i could probably shoot my neighbor for killing my dog and get off on the grounds of justifable homicide...<br />
<br />
Reply by Heather Bussing 22 hours ago<br />
Actually in San Francisco and LA, it all depends on what you were wearing at the time. :><br />
<br />
Permalink Reply by Sandra McCartt 20 hours ago<br />
Or if it were a full moon , i had two one eye jacks and i just intended to wound him and not kill him. Now if i planned it, hid in the shrubs and shot him in a cold calcuated manner in the back , welll........and that's point</i> Heather, my sentiments exactl…tag:recruitingblogs.com,2009-02-23:502551:Comment:5633602009-02-23T17:20:14.510ZJoshua Letourneauhttps://recruitingblogs.com/profile/JoshuaLetourneau
Heather, my sentiments exactly. At the end of the day, I cannot see a non-compete being enforced against a 1099 independent contractor. Yes, a company can sue, and thereby tie up the defendant (in this civil matter) up for months and months during litigation . . . but to formally win and receive any form of damages? Highly unlikely. I have seen circumstances where the suing party has also been counter-sued for all legal costs in defense. This begs the question, "Was it worth it, at least in the…
Heather, my sentiments exactly. At the end of the day, I cannot see a non-compete being enforced against a 1099 independent contractor. Yes, a company can sue, and thereby tie up the defendant (in this civil matter) up for months and months during litigation . . . but to formally win and receive any form of damages? Highly unlikely. I have seen circumstances where the suing party has also been counter-sued for all legal costs in defense. This begs the question, "Was it worth it, at least in the sense that the defendant was tied up for months and months when attempting to launch their new venture?" The answer may very well be an emphatic "Yes", as limiting the defendant's ability to engage in early-stage business may bankrupt them.<br />
<br />
The elephant in the room is simply this: By pursuing a non-compete against a 1099 contractor (of whom you paid zero federal withholding, etc.), you may open yourself up to a potential misclassification lawsuit as a result (at least here in the U.S.). Now let's ask the same question again . . . given the risk of such a development, was it worth it to protect a "client list" of organizations that are looking to hire the best people, regardless of source? Sometimes we must be careful because our bluff just might get called.<br />
<br />
Now, for my own little flavor, I'll say this: If any firm thinks they're going to engage me as a 1099 in an Executive Search situation, and they think they are going to sue me for a Non-Compete, they will lose . . . and they will lose spectacularly. I just might invest a little of my own money and resources to make an example out of them; an example we can all laugh about here on RBC.<br />
<br />
P.S. In closing, let me suggest that we have a global presence on RBC, and there are times when questions or discussions are started where it is difficult to speak intelligently and provide legitimate advice. While I have a grasp of the U.S., I cannot speak to Canada, the U.K., India, etc.<br />
<br />
<cite>Heather Bussing said:</cite><blockquote cite="http://www.recruitingblogs.com/forum/topics/tpr-firm-can-a-noncompete-be#502551Comment562498"><div>Generally non-compete agreements only apply to employees. So they would not generally apply to independent contractors. BUT the distinction between an employee and an independent contractor usually gets decided on a case by case basis depending on factors such as where the person works, whose equipment is being used, whether they have independent discretion or are under supervision as to how to perform the job.<br/></div>
</blockquote> I could be wrong, but i do no…tag:recruitingblogs.com,2009-02-22:502551:Comment:5622932009-02-22T18:13:32.893ZCaseyClinehttps://recruitingblogs.com/profile/cristin343
I could be wrong, but i do not believe this is enforceable with 1099's. To enforce it as a client of the 1099, you are opening yourself up to a misclassification suit on the grounds that you are exerting control on the worker. 1099 = independent contractor, key word: Independent.<br />
The 1099 should be free to work for whomever they chose, free from control from any client/former clients.
I could be wrong, but i do not believe this is enforceable with 1099's. To enforce it as a client of the 1099, you are opening yourself up to a misclassification suit on the grounds that you are exerting control on the worker. 1099 = independent contractor, key word: Independent.<br />
The 1099 should be free to work for whomever they chose, free from control from any client/former clients. Hey Joshua,
My company only…tag:recruitingblogs.com,2009-02-20:502551:Comment:5613842009-02-20T23:38:58.296ZSean C.https://recruitingblogs.com/profile/SeanC
Hey Joshua,<br />
<br />
My company only uses 1099 contractors for field work, and I've never heard of any dealing with repercussions of a no-compete agreement. I've had a few prospective contractors tell me they couldn't do work for us because they signed a no-compete with another company. Personally, I think you'd have to be a complete idiot to sign something like that and work as a contractor.<br />
<br />
Now you have $.04!
Hey Joshua,<br />
<br />
My company only uses 1099 contractors for field work, and I've never heard of any dealing with repercussions of a no-compete agreement. I've had a few prospective contractors tell me they couldn't do work for us because they signed a no-compete with another company. Personally, I think you'd have to be a complete idiot to sign something like that and work as a contractor.<br />
<br />
Now you have $.04!