Does my contractor agreement have a non-compete — and can they enforce it against me?
The short answer
Non-compete clauses do appear in independent contractor agreements, but their scope, duration, and practical weight vary widely. Whether a non-compete in a contractor agreement is enforceable depends on state law, how it is drafted, and in some states the nature of the relationship — a few states treat most non-competes as void, others use a reasonableness test. A separate question worth noting is whether a contract that restricts your ability to work for other clients might also raise questions about how the relationship is classified — because contractors are generally understood to be in business for themselves and able to work for multiple clients. That is a question worth asking, not a verdict on your situation. Scan your agreement to see what any non-compete or exclusivity clause actually says.
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What non-compete clauses in contractor agreements typically look like
A contractor non-compete may restrict you from working for clients in a defined industry or geography for a period after the engagement ends, from soliciting the client's customers or employees, or from taking on other clients in the same space while the engagement is active (an exclusivity clause). These are legally distinct restrictions, though they often appear together. The scope of each — what industry, what geography, how long — is set by the clause wording.
One angle that comes up specifically for contractors: a restrictive non-compete that prevents you from working for other clients can raise questions about whether the relationship looks more like employment than a contractor engagement. The official FAQ from California's Department of Industrial Relations describes the ABC test, which notes that the hiring entity cannot unilaterally assign the label 'independent contractor' to establish status. Whether that applies in your situation is worth asking about, not assuming.
Why people worry
The classic contractor worry is discovering a clause that effectively prevents them from working in their specialty for a year after the engagement ends — potentially their entire market. A second worry is discovering a broad exclusivity clause that was always there but never discussed. Both are more common than many contractors expect.
What to look for in your agreement
- Any non-compete clause — what industry, geography, and time period it covers.
- A non-solicitation clause — does it restrict client relationships, employee relationships, or both?
- An exclusivity clause — does it prevent you from working with other clients while engaged?
- The geographic scope — national, regional, or industry-wide restrictions are worth flagging.
- Choice-of-law clause — which state's rules govern the agreement, and does that state treat non-competes differently?
Questions to ask before signing
- Ask the client to explain what the non-compete covers specifically — which competitors, which industries, how long.
- Ask the other party to clarify whether any exclusivity clause prevents you from maintaining other active client relationships.
- Confirm whether the non-compete and non-solicitation clauses are mutual.
- Consider having the agreement reviewed before signing if a non-compete would affect your ability to work in your primary field.
Why scan instead of guess
The general rule tells you the baseline. Your agreement tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.
The deterministic engine scores and decides what’s risky. The AI only enriches the plain-English wording — AI extracts, code decides, never the other way around.
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Common questions
Is it normal for a contractor agreement to include a non-compete?
They appear in some contractor agreements, more commonly in certain industries than others. Whether they're appropriate or enforceable as applied to an independent contractor is a separate question from whether they're common. The clause language — scope, duration, and geography — is the starting point.
Can a client stop me from working for other clients while I'm engaged?
An exclusivity clause can try to do that — and some do. Whether it is enforceable in your situation depends on how it is written, what state law applies, and other circumstances. It's also a clause worth flagging when reviewing a contractor agreement, because it's different from a post-engagement non-compete.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.