Independent contractors are not employees under the Fair Labor Standards Act (FLSA) and thus, the rules that govern the relationship between independent contractors and the companies who utilize them is indeed contractual. Unfortunately, many companies fail to require independent contractors to sign contracts related to terms of service, non-disclosure and other important facets of their business that can open them up to loss or even liability.
Corporate and business leaders should utilize independent contractor agreements to manage the relationship from the onset. A solid contract will help contractors and vendors know what obligations they must meet and the consequences of a breach of contract as well as the stated legal limitations of each relationship. This can be crucial should an independent contractor or vendor fail to perform their agreed upon duties to the detriment of the company (or if they disclose confidential or proprietary information to outside sources, including competitors).
Non-compete clauses are particularly necessary for companies that offer extensive paid training to contractors or have concerns that today’s contractor might be tomorrow’s competitor. While there are legal limitations, Florida companies can protect their interests in the immedate future by requiring new contractors to adhere to non-compete clauses.
The Campbell Law Group represents managers, owners, and companies to negotiate and draft ironclad independent contractor agreements. Our legal team can also review your existing contracts to mitigate risk and enhance your standing. From non-competes to non-disclosures, you can rely on us to protect your company while meeting your managerial objectives.
Learn more about how The Campbell Law Group can help your company. Contact us for an Initial Consultation today.