As a 1099 employee after a year I am being asked to sign a non-compete

After just over a year of working with a company as a 1099, they are now asking for me to sign a non-compete agreement. The company is a marketing agency that currently is exclusive to the hospitality industry. I only work on social media marketing for them but prior to working with them I have been working as a freelance marketing & design person. I live in PA, the company is in NJ and their agreement is saying I will not compete "anywhere" with them. It doesn't detail what they do or what I can't do. I am planning on moving to Florida in 6 months and working on developing my business more. Although I do not plan to seek out hotel clients, I do want to gain clients such as bars & spas. The company is not offering anything in return for signing this and I want to know if the agreement will inhibit me from my business. Should I have them list specifically the industries and services which they are asking me not to work in since they could expand and the agreement doesn't identify their clients or services just that I will not compete with the company.

1 answer  |  asked Dec 15, 2012 7:21 PM [EST]  |  applies to Pennsylvania

Answers (1)

Doris Dabrowski
A 1099 is appropriate if you are an independent contractor. An employer must withhold taxes, and pay contributions for FICA and the unemployment fund. I question whether you have been properly classified as an independent contractor. Is there a proposal to change your status from contractor to employee? You should try to negotiate the terms of the proposed non-compete agreement to narrow the terms as much as possible. I cannot recommend options without a full disclosure of all pertinent facts. You should consult me or another attorney about the specific facts in your situation.
Doris Dabrowski, 1525 Locust St., Philadelphia, Pa. 19102, 215-790-1115.

posted by Doris Dabrowski  |  Dec 17, 2012 3:15 PM [EST]

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