If a 1099 employee signed non-compete, is it binding?
My company downsized and closed our WI offices in 2008 and laid everyone off. I was offered to come back on a contract basis if I signed a non-compete. In the non-compete I am referred to as the "employee" when I am clearly not one. I pay my own taxes and receive no expense reimbursement and no benefits. I have since left the company so I could pursue a job with a salary and benefits but with a competitor. Does my non-compete hold water for them?
A non-compete is enforceable as long as it is reasonable in time and geographic area. Furthermore, there needs to be consideration exchanged when you sign the non-compete. If you did not sign the non-compete as of yet then you should not have any issue finding a job at a competing company. Indeed, if you did not sign the non-compete then there is no basis for the employer to claim that you are held to it. Your employer cannot insist that you are obligated to honor it basedon your prior employment. I suggest showing the contract to a lawyer to confirm that it is not enforceable as I would have to see it to give you a definitive answer, but based on what you say, the contract doesn't hold water if you have not signed it. If you did sign it, i suggest havign the lawyer determine if it is enforceable based on its terms - you do not need to be an employee to sign a non-compete agreement.