QUESTION
I recently signed a work contract with a company, but I am not being paid enough. According to the contract I am a 1099 worker, can I work elsewhere?
Asked on Mar 29th, 2016 on Employment Contracts - Nevada
More details to this question:
I signed neither a W9 nor W4 form, the contract states that I must work exclusively with the company for 6 months, cannot work with a competing business or open my own within 3 years of working for them. I thought nothing of it when I signed it, but I am, according to them, an independent contractor, so I should be free to seek other work. An exclusivity agreement seems to contradict the title of independent contractor. Furthermore, my training is very specific and I invested in my own education, it was not paid for by the company. The rate of pay is well below what minimum wage would be, so restricting me from work would be extremely burdensome. I do not think that the contract I signed is enforceable because it seems to have been written for an employee, without the responsibilities on behalf of the employer. I intend to end my association with this company, I would like to know if they have grounds to sue me. Also, at this point I have not received any form of compensation.
1 ANSWER
1 Award
This is a fact-specific inquiry that cannot be answered without a review of the agreement, etc. However, a noncompete may be enforceable if consideration was given. Futhermore, you may be an employee (even though they refer to you as an independent contractor). Also, what was the purpose of the noncompete, i.e., was it to protect valuable information that you were provided, or was it simply to quell competition? These are all facts that would need to be reviewed to provide you with an answer to your question.
Answered on Apr 08th, 2016 at 1:26 PM