Business from prior contractors companies

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Business from prior contractors companies

I have been an independent contractor with a company for the past 2 years. However, there has been inconsistency of assignments, so this year I formed my own LLC company LLC. Now, some of the same companies that my contractor supplied me have reached out to me. Can I move forward to sign a contract under my company’s name and accept work without lawsuit from the previous company even though I was contracted with my name?

Asked on July 17, 2018 under Business Law, Virginia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you signed any non-competition or non-solicitation agreement, you will be held to whatever they say. If there was no such agreement, you can do business with the your former employer's contacts: competition is generally legal except when there is an agreement to the contrary.  That does not mean that they may not try to sue you (either to scare you off, to cost you money, or because they are angry, etc.), but based on what you write, if the contacts reach out to you, you can work with them, and should be able to successfully defend any such hypothetical lawsuit.


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