What are my rights if I’m a 1099 Contractor with a business that has a client that wishes to move over to my business?

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What are my rights if I’m a 1099 Contractor with a business that has a client that wishes to move over to my business?

However, in an agreement that I signed as a 1099 Contractor 7 months ago, it states that you cannot bring clients over to your business for up to 4 years after you cease to be a contractor and presumably while still a contractor for the business. However, my client approached me about moving over to my business, as opposed to me directly selling my business to her. If she want to come to me without provocation on my part, am I still bound by the agreement that I signed?

Asked on September 18, 2015 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

A contract like the one you describe, to not bring clients to your business, is generally enforceable. The question is, what specifically does it say? Contracts are enforceale as per their plain words you have to do what the contract says--no more and no less. To answer your question, bring a copy of hte contract to an attorney who can review its precise langauge and the situation with you.


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