Can an independent contractor be subject to a non-compete?

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Can an independent contractor be subject to a non-compete?

I have been renting space from another doctor and he wrote the contract as if I was an independent contractor. We share the same space but I have my own staff paperwork and treat my own patients. He does not help me get patients. In fact I do not have a sign or a phone line. All my patients come from word of mouth. Now I wantto leave and he is trying to enforce the 7 mile non-compete for 2 years. Will it hold up? In PA.

Asked on November 17, 2011 under Business Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Yes, it will hold up. While people typically think of non-competition (or non-solicitation) agreements in the employer-employee context, when you get down to it, a non-competition agreement is nothing more or less than a contract. Any two parties may enter into any contract to do anything which is not inherently illegal. (e.g. no contracts for tax evasion.) There is nothing inherently illegal about agreeing to not compete with someone; indeed, it's actually more common than you might think for someone to insist that a contractor or subcontractor sign such an agreement, as way to avoid letting that contractor "steal" clients or market share. While it's possible there is some problem with this specific agreement which will prevent or limit its enforceability (and you should therefore have it reviewed by an attorney), as a general matter, this kind of agreement is enforceable.


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