Independent Contractor Non-Compete Agreement

First, Thank You for your time and reply. I am an independent 1099 health and life insurance agent. I would be working for the company in Illinois. I am considering employment with a Florida based insurance agency that wants me to sign a one sided, restrictive, 2 year non-compete agreement. It's important to note that they specifiy in the agreeement that there is no employeee and employer relationship that exists. I pay all my expenses and get zero benefits - the position is 100% commission. Can they enforce this agreement on me as an independent agent and non-employee ?

1 answer  |  asked Jun 10, 2009 01:18 AM [EST]  |  applies to Illinois

Unlock Non-Compete Agreements: Keys to Escape

Answers (1)

Neil Klingshirn
Non-competition agreements are not limited to employment relationships. They show up in other types of contractual relationships as well, like independent contractor agreements and agreements for the sale of a business.

The further a contract is from the employment relationship, the less scrutiny courts tend to give it for overreaching restrictions. Courts have upheld non-competition agreements for up to five years in connection with the sale of a business, for example. As an insurance agent, though, I suspect that most courts would interpret and enforce an insurance agent independent contract non-compete the same way they would for an employee.

I realize this answer is a bit late to help you with the situation that prompted your question, but I thought it a good question and thought it deserved a better late than never answer in case someone has it again.

posted by Neil Klingshirn  |  Oct 4, 2014 1:50 PM [EST]

Answer This Question

Sign In to Answer this Question

Related Questions with Answers

Have an Employment Law question?

Contact Neil Klingshirn

Neil Klingshirn
AV rated Super Lawyer and Employment Law Specialist
Independence, OH
Phone: 216-382-2500