Non-Compete for an unpaid Independent Contractor

I direct pageants- I was presented with a contract with a company after 9 months of hosting pageants for them.... I had invested 1,000's of dollars on signage and other items so when I was presented the contract I felt the need to sign it- looking back I shouldn't have - but this is my question. The contract states many things but I'll give a basic over view. #1 I'm considered an Independent Contractor #2 I receive no wages just a bonus per contestants whom enters the national pageant ($20 per person, so not really anything ) #3 within the contract it says I have a non-compete clause for 3 years in any form , any where within the industry #4 I have to pay them $20 for every state contestant I have. #5 in the contract it also states the

1 answer  |  asked Aug 29, 2016 02:49 AM [EST]  |  applies to North Carolina

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Answers (1)

Chris Wilms
Non-competes have to be narrowly tailored to be enforceable. They are restraints on trade, and are looked upon unfavorably by the courts, so they have to be carefully crafted to be enforceable.

A review by an attorney will tell you the likelihood that it's enforceable.

Generally there are 3 options: 1) Ignore the non-compete and face potential civil consequences (this is actually more often the selected option than you might think), 2) Renegotiate the terms or a release from the non-compete, or 3) Seek a declaratory judgment that the non-compete is unenforceable.

You'll likely not want to navigate this by yourself, so you should consider retaining legal counsel experienced in employment contracts & negotiation.

posted by Chris Wilms  |  Aug 29, 2016 05:40 AM [EST]

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