Draft a Non-Compete Agreement for an Independent Contractor

Non-compete agreements for independent contractors

This page covers non-compete agreements written specifically for an independent contractor — the kind of restriction a company asks a freelancer, consultant, or 1099 contractor to sign before an engagement begins. For the broader tool and other relationship types, start from the AI non-compete generator.

A non-compete agreement for an independent contractor restricts the contractor from competing with your business — directly, or by working for a competitor — for a defined time and within a defined area after the engagement ends. Because a contractor is self-employed rather than an employee, courts scrutinize these clauses closely, and a poorly drafted one is often unenforceable.

What an independent contractor non-compete should cover

• The parties — the contracting company and the independent contractor, named correctly as a 1099 relationship, not an employment one.
• Restricted activities — the specific competing work that is off-limits, defined narrowly rather than as a blanket ban.
• Duration — how long the restriction lasts after the engagement ends; shorter, defensible periods hold up better.
• Territory — the geographic area the restriction covers, tied to where you actually do business.
• Consideration — what the contractor receives in exchange, such as the contract fee, client access, or a separate payment.
• Signatures — execution blocks and dates for both parties.

Common mistakes to avoid

The most frequent errors are overreaching scope, an unreasonably long duration, no defined territory, and missing consideration. Many companies also find a narrower restriction works better in practice — a non-solicitation clause that simply bars the contractor from poaching your clients or staff is far easier to enforce than a full non-compete.

Non-compete law varies dramatically by state, and several states limit or prohibit these agreements outright, especially for independent contractors. EZdoc produces a clean, professionally formatted draft in seconds, but you should have a local attorney review the terms before either party signs.