Non-solicitation agreements for independent contractors: scope, clauses and enforcement


Contents
Key takeaways
- A contractor non-solicitation agreement protects defined client, prospect, team member or supplier relationships. The operative verbs matter: a restriction on soliciting a customer differs from a broader non-dealing clause that also restricts accepting or transacting business with that customer.
- Start with the exposure you actually face. Confidential information may call for access controls and confidentiality duties; an active relationship at risk may justify a targeted non-solicitation term after local-law review.
- Define what counts as solicitation. Active outreach, indirect approaches, general advertising, an unsolicited customer approach, acceptance of work and use of protected information raise different questions. The clause and governing law determine the result.
- Limit the restriction to the people, relationships, period and trigger that the business can explain. One contractor agreement does not establish a universal reasonable duration, territory or set of exceptions.
- Check four items before relying on the clause: applicable law, the worker's actual category, the clause's substantive effect and its operative date. A document labelled “non-solicitation” may still be treated as a broader restraint in some circumstances.
- Review the clause as part of the entire working relationship. A restrictive term does not by itself determine contractor status, but practical exclusivity, control and freedom to serve the market belong in that review.
- When a breach is suspected, preserve the contact and information trail before drawing conclusions. Keep separate the facts about contact, active solicitation, use of protected information, causation and loss.
- A suspected breach does not establish a remedy. Contractual revision, release or dispute procedures and any court or tribunal remedy depend on the agreement, jurisdiction, evidence and applicable procedural rules.
What a contractor non-solicitation agreement does
A contractor non-solicitation agreement restricts specified attempts to divert a protected relationship from the company that engaged the contractor. It can address clients, prospects, team members or suppliers. Its practical effect depends on the verbs used: preventing a contractor from soliciting a protected client is different from preventing the contractor from accepting or transacting business with that client.
Which relationships can it protect?
A client-facing non-solicitation clause typically protects relationships connected with the work performed for the company. The clause should identify the relevant clients or contact categories rather than refer vaguely to “all customers” or “any business.” Depending on the engagement, the protected group may include:
- Clients with whom the contractor worked directly.
- Prospects or potential clients introduced through the engagement.
- Team members or other contractors whom the contractor recruited, solicited or approached.
- Suppliers or strategic partners with whom the company had a material relationship.
- Contacts subject to a separate confidentiality obligation.
The clause's wording matters more than its label. Washington law, for example, distinguishes an agreement that directly or indirectly prohibits accepting or transacting business with a customer from a narrower non-solicitation agreement. The operative language therefore matters when deciding what conduct the parties intended to restrict.
A client restriction can also differ from obligations concerning worker recruitment and confidential information. In a New Hampshire contractor dispute, the agreements contained separate non-disclosure, non-compete and non-solicitation provisions. Those were pleaded terms in the dispute, not a ruling that every restriction in every contractor agreement is valid.
Non-solicitation, non-dealing, non-compete and confidentiality
These restrictions address different risks:
| Restriction | Conduct it may address | Key distinction |
|---|---|---|
| Non-solicitation | Active attempts to persuade a protected client, prospect or team member to leave the company | Usually turns on what solicitation means and who initiated the contact |
| Non-dealing | Accepting or transacting business with a protected customer or counterparty | Reaches more than an active approach and may affect the counterparty's choice |
| Non-compete | Working for a competitor or operating a competing business | Restricts work or competition itself, rather than only solicitation of a defined relationship |
| Confidentiality | Use or disclosure of protected information | Protects the information itself rather than the right to a customer relationship |
The operative verbs also matter when a clause covers indirect contact. In a Massachusetts pleading-stage decision, a clause referring to “solicit or accept business” raised a plausible unenforceability challenge because it reached situations in which people who had not signed the agreement approached the plaintiffs. The court did not finally invalidate the clause, but its analysis shows why “accepting business” requires separate attention from actively soliciting it.
A confidentiality clause does not necessarily stop a contractor from approaching a client. A non-solicitation clause does not necessarily prevent use of client information. A non-compete may reach work that a non-solicitation clause does not. If several provisions appear in the same contractor agreement, identify which relationship each one protects and what conduct it prohibits.
For an independent contractor, the fit of any restriction still depends on the applicable law, the worker's actual status, the protected interest and the clause's real effect.
Decide what needs protection before adding a restriction
A contractor non-solicitation clause fits when the company needs to protect a defined relationship from active diversion and has selected the conduct, contacts and local-law scope that address that risk. A confidentiality or access-control measure is more suitable when the exposure is the disclosure or use of protected information. The two risks can coexist, but they require different contractual and operational responses.
Confidential information or an active relationship?
Begin by identifying the asset exposed to risk. Ask whether the concern is:
- Confidential information that could identify or give a contractor an advantage in approaching a protected client.
- A client, prospect, team member or supplier relationship that the company wants to preserve.
- Both information exposure and active diversion of a relationship.
US trade-secret guidance illustrates why the first question matters. Information such as a customer list may qualify as a trade secret only when it has economic value from remaining nonpublic, is not legitimately obtainable by others and is kept secret through reasonable efforts. A customer list is not automatically protected because it contains customer names. Reasonable secrecy measures can include limiting access, confidentiality agreements for outside parties and assigning different computer-system permissions.
A confidentiality measure addresses information exposure directly. It can require a contractor to preserve the secrecy of covered material and restrict access without preventing the contractor from serving other clients. Whether that measure protects the company legally depends on the information's status and the applicable law; it does not replace a decision about relationships.
An active-relationship concern is different. If the contractor personally developed a client relationship or possesses information useful for approaching that client, the company may need a targeted restriction on solicitation. In one unpublished Michigan contractor dispute, the appellate court recognized a case-specific competitive interest in company goodwill, client relationships, client lists and pricing information. That reasoning concerned a non-compete claim, so it illustrates the nature of the protected interest rather than establishing a universal non-solicitation rule.

When a narrower safeguard may fit
Choose the safeguard that matches the actual exposure instead of starting with a broad restriction on future work. The practical review is:
- Identify the exposure. Record whether the concern is information, a relationship, or both.
- Test the information. Determine whether the material is genuinely confidential, whether reasonable secrecy measures exist and who can access it.
- Map the relationship. Identify the clients, prospects, team members or suppliers connected with the contractor's work and the period during which the contractor handled them.
- Check existing controls. Review confidentiality duties, access permissions, document handling and any pre-existing contacts before adding another term.
- Define the necessary conduct. Distinguish active solicitation from acceptance of an unsolicited approach, use of protected information and ordinary work for other clients.
- Review the fit under local law. Check the governing law, worker category, protected interest and effective date before relying on the restriction.
A separate-business clause can be relevant when the contractor maintains another business. In the unpublished Michigan case, the contractor's agreement expressly allowed work for third parties, and the court interpreted a request-for-proposal forwarding duty as applying to work intended for the company rather than the separate business. The case-specific exception shows why the contractor's pre-existing work and contacts should be documented before a restriction is proposed.
The same review may lead to a combination of measures: access controls for sensitive information, confidentiality duties for protected material, and a limited non-solicitation clause for relationships the contractor developed. It may also show that the exposure can be handled through document and access controls without restricting the contractor's future client relationships.
The safeguard must address the identified risk and fit both the engagement and the applicable law. A copied clause does not complete that review.
Who and what should the clause cover?
A contractor non-solicitation clause should identify the relationships the company wants to protect and the limits of the contractor’s responsibility. Broad wording such as “any client,” “all contacts” or “any business” can reach people and opportunities the contractor never handled. A clearer clause ties the restriction to defined contacts, material dealings and the contractor’s role in the engagement.
Clients, prospects, team members and suppliers
The protected categories should reflect the business the contractor actually performed:
- Clients: people or organizations for which the contractor delivered services, managed a relationship or had material dealings.
- Prospects: opportunities connected with the company’s pipeline, particularly when the contractor actively developed them.
- Team members: contractors, consultants or other contributors recruited, solicited or approached through the engagement.
- Suppliers: vendors or strategic partners whose relationship the company has a genuine reason to preserve.
The clause should distinguish categories where the risk differs. A restriction on approaching a client may concern confidential information or active diversion of an account. A team-member restriction may protect continued access to a specialist team. A supplier restriction may protect a relationship that depends on reputation, confidential specifications or coordinated delivery.
Scope should also follow the contractor's actual involvement. If the contractor had no contact with a prospective client, did not participate in the relationship and learned nothing confidential about it, a claim that the contractor diverted that relationship requires separate proof. The Michigan contractor dispute included an exception for contacts where the contractor established no involvement and no knowledge of related confidential information. That unpublished, case-specific provision is an example of how a contract can narrow the protected group, not a mandatory exception for every agreement.
Define clients by material dealings, the engagement period and the information or relationship the company seeks to protect. “Client” should not cover everyone in its commercial network. Local law still determines whether that scope is enforceable.
Existing relationships and contacts the contractor never handled
Pre-existing relationships need a separate review before the clause is signed. A contractor may already serve a client, supplier or business partner before working for the company. Restricting that ordinary business can create a dispute over ownership of the contact and may place the contractor's existing work at risk.
Record the relevant facts:
- Which clients, prospects, suppliers or team members the contractor had approached or served before the engagement.
- Whether the company knew about those relationships when it engaged the contractor.
- Which contacts the contractor introduced to the company and which contacts came through company systems or introductions.
- Whether the contractor handled confidential information about a contact outside the company's engagement.
- Whether a separate business had an express right to serve third parties.
The Michigan case illustrates why this documentation matters. The contractor's agreement expressly allowed the separate business to perform services for third parties, and the court rejected the claim that an RFP-forwarding duty applied to opportunities intended for that separate business. The unpublished outcome does not create a general carve-out for contractors with outside businesses; it shows why the agreement should state whether such work is permitted and how company opportunities are distinguished from the contractor's own.
A company can protect legitimate relationships without claiming every pre-existing contact. Practical approaches include:
- Scheduling the restriction to contacts the contractor handled, developed or received through the company.
- Excluding documented pre-existing clients and other relationships that remained outside the engagement.
- Requiring the contractor to disclose relevant existing relationships before signing.
- Separating company opportunities from work for the contractor's own or another business.
- Applying confidentiality duties to information obtained through the engagement even where the contact itself predates it.
These measures should be reviewed under the applicable law. They narrow the commercial uncertainty; they do not establish enforceability in advance. The clause becomes clearer when both sides can point to the contacts it covers, the relationships it excludes and the evidence supporting that boundary.
What counts as solicitation?
Solicitation is a factual question about conduct, not a label the parties can apply after the event. The answer depends on the clause wording, who initiated the approach, whether the contractor took an affirmative step, whether protected information was used and the law that applies. A document should define these boundaries before the engagement begins.
Active outreach and indirect approaches
Active solicitation usually involves an affirmative attempt to persuade a protected client, prospect or team member to work with the contractor or their company. Examples include targeted outreach, presenting an alternative proposal to a protected contact or encouraging a contact to terminate or redirect the relationship.
Indirect conduct requires a closer look. A contractor may approach a protected client through an intermediary, mention the client to a third party or use information obtained during the engagement to identify and approach the client. The question is whether the contractor caused the approach and what the clause covers.
Define Solicitation. What actions are considered solicitation? Direct or indirect contact?
— Ashley Eley Cannady and M. Brant Pettis, partners, Balch & Bingham LLP
This drafting question is useful because the clause may need to specify what conduct falls within “solicitation.” It does not establish a contractor-specific legal rule. The actual clause, the facts and the governing law still control.
The New Hampshire contractor dispute shows why separate provisions matter. The agreements included non-disclosure, non-compete and non-solicitation terms. The court considered an allegation that confidential information had been used in soliciting a named client, but that allegation survived only an early procedural stage. It was not a final finding that the contractor had used the information or breached the agreement.
General advertising, unsolicited contact and accepting work
General advertising, an unsolicited inquiry and acceptance of work should not be treated as the same event. A contractor may publish ordinary marketing that reaches the market at large while never targeting a protected contact. A client may contact the contractor without any solicitation from the contractor. The client may then offer work that the contractor accepts.
The clause's verbs determine the scope of the promise. A provision covering “solicit or accept business” can reach conduct that did not begin with the contractor. In the Massachusetts federal pleading decision, the court found a plausible unenforceability challenge to that wording because it could limit the freedom of non-contracting parties to approach the plaintiffs. The court did not finally invalidate the clause, and the decision concerned the facts and law before it.
In the unpublished Michigan contractor case, an ex-coworker approached the contractor's new company for work. The contractor took no action to solicit her. The court held that accepting her offer without other affirmative action did not breach the clause. That case-specific result illustrates why contact origin matters; it does not establish that unsolicited business is always permitted.
The matrix identifies evidence to check for each type of conduct; the clause and local law still determine its treatment.
| Conduct | What to verify | Why it matters |
|---|---|---|
| Direct outreach to a protected client, prospect or team member | The clause definition of solicitation, who contacted whom, and the date of the approach | This is the clearest fact pattern for assessing an affirmative solicitation claim |
| Indirect approach through another person or channel | Whether the contractor directed, encouraged or caused the approach, and whether the wording covers indirect conduct | A third-party approach may have several possible causes and may fall outside the clause |
| General advertising or ordinary public marketing | Whether the advertisement targets a protected contact, uses protected information, or is part of a targeted campaign | Mass advertising may differ from direct solicitation, subject to the clause and local law |
| Unsolicited inquiry from a client or prospect | Who initiated contact, what the contractor replied and whether an engagement followed | A contractor may receive an approach without soliciting it |
| Accepting work after an unsolicited approach | Whether the clause expressly covers acceptance or non-dealing, and whether an exception applies | “Accept” language can extend beyond solicitation and may affect third-party choice |
| Using protected information to make an approach | The source of the information, the person who used it, the access history and any evidence of disclosure or copying | Information use is a separate issue from who initiated contact |

A client departure alone does not prove solicitation. Preserve the messages, identify who initiated contact and assess the contractor's conduct and information use separately from the client's decision.
Using protected information
Information use requires its own inquiry. A contractor may receive information legitimately and still be prohibited from using it for a new solicitation, or information may have been obtained without authorization. The clause should identify what information is protected, who may use it and what happens after the engagement ends.
The New Hampshire decision applied a careful distinction at the pleading stage. Starting a competing recruiting business did not, by itself, establish use of confidential information. The specific alleged use connected to one client was sufficient to survive an early motion to dismiss. That does not prove the allegation; it identifies the evidence that needed to be developed.
Record the information trail:
- Which document, database entry or introduction provided the information.
- Whether the contractor was authorized to access or use it.
- Whether the protected contact could be identified from public information without the disputed material.
- Whether the approach used facts that were not otherwise known to the contractor.
- Who communicated with the protected contact and what was actually communicated.
Connect the protected information to the disputed conduct through a message, access record, document or witness account where available. Then assess whether the approach itself was solicitation.
How to set the clause's limits
A contractor non-solicitation clause should connect its duration, territory, covered contacts and exceptions to the relationship the company is protecting. No evidence establishes a universally reasonable period or geographic boundary for independent contractors. Those terms require a fact-specific review under the law that applies to the engagement.
Duration, start date and termination
Start with the end of the protected relationship rather than a date copied from a template. A restriction may begin when the engagement ends, when a defined client relationship ends or when the contractor receives protected information that remains relevant. The trigger should match the event the company is trying to protect.
A sample clause from the Massachusetts contractor dispute applied for one year after termination and used a limitation area tied to the state where the business leader operated. That contract term is an example, not evidence that one year is generally reasonable or that the same territory would fit another engagement.
The drafting review should establish:
- Duration: How long the protected information or relationship remains commercially relevant.
- Start date: Whether the restriction begins at termination, at the end of a client relationship or on another defined event.
- Termination: What ends the restriction and whether it expires automatically.
- Renewal: Whether any extension requires a new agreement or written approval.
- Survival: Which confidentiality, document-return or other obligations continue after the non-solicitation period.
Avoid an open-ended period when the relevant exposure has ended. Conversely, a short period does not solve a problem if the restriction applies before the contractor has had an opportunity to wind down the engagement or if protected information remains available indefinitely. The company should document the business reason for the period and the contractor should identify work it could no longer pursue if the restriction were broader.
Geography and relationship-based scope
A geographic restriction and a relationship-based restriction serve different purposes. Geography identifies where the contractor operates; a relationship-based clause identifies the clients, prospects, team members or suppliers connected with the engagement. A contract may use both, but neither should be assumed to solve the same problem.
A relationship boundary may be more precise where the concern is a particular client relationship. It can identify:
- Clients for whom the contractor performed material work.
- Prospects the contractor actively developed for the company.
- Team members or suppliers recruited or approached through the engagement.
- Contacts introduced by the company or recorded in its systems.
- A period during which the contractor handled the relationship.
The Michigan contractor dispute shows how a case-specific clause separated company work from the contractor's separate business. The agreement allowed the separate business to serve third parties, and the court read an RFP-forwarding duty as applying to work intended for the company rather than the separate business. The unpublished opinion does not establish a rule for other contractors. The agreement should state which relationships belong to the engagement.
Geographic scope should be tied to an actual operation or customer base. If the company wants to preserve relationships across several countries, a single country label may not reflect how the work is delivered. If the contractor operates through another business or from another location, the geography and contracting entity need to be clear.
Do not expand a defined relationship clause into a general restriction on ordinary future work unless the company identifies the specific risk that expansion addresses. The clause and local-law review should explain why the selected territory, contacts and duration are connected to the protected interest.
Exceptions, consideration and document formalities
Exceptions should resolve identifiable boundary problems rather than appear as a generic disclaimer. The Michigan agreement, for example, excluded a partner or prospective partner where the contractor established no involvement and no knowledge of related confidential information. That unpublished, case-specific exception illustrates a useful drafting question: which contacts were outside the contractor's knowledge or work?
Common subjects for review include:
- Relationships the contractor had before the engagement.
- Work for a separate business.
- Contacts introduced by a third party.
- General advertising that does not target a protected relationship.
- Responses to unsolicited approaches.
- Contacts outside the contractor's actual knowledge or responsibility.
- Work the contractor performs after the relevant relationship or information has ceased to be commercially relevant.
Keep the exception's condition clear. “Any business the contractor already had” may be harder to apply than a defined schedule, project record or contact list attached at signing. The parties should record what they intended to cover without assuming that a future court will treat the record as conclusive.
Consideration and scope also require separate review. In the Massachusetts pleading decision, the court rejected the plaintiffs' claim that the agreement lacked consideration on the alleged facts, while allowing a separate challenge to the “solicit or accept” scope. One issue did not decide the other. Depending on the applicable law, consideration, assent and required formalities may affect whether the restriction is binding.
Before signature, check that:
- The parties have accepted the same version of the clause.
- Covered contacts, exceptions and the duration are identifiable.
- Any required consideration or formalities have been completed.
- Existing relationships and separate-business work have been recorded.
- The governing-law clause has been reviewed for the contractor's location.
- Signature, amendment and termination procedures are clear.
These steps clarify what the parties agreed. Enforcement still depends on the applicable law, the worker's actual status, the protected interest and the clause's substance.
Does the clause hold up where the contractor works?
A contractor non-solicitation clause may be enforceable, but its heading does not decide the question. You need to identify the governing law, the worker's actual category, the conduct prohibited and the date when the restriction operates. The protected interest, scope and local procedural rules also matter.
The applicable law and the worker category
Start with four separate questions:
- Which law governs the clause? Check the agreement, the contractor's location and any local rule that limits the parties' choice of law.
- What is the worker's actual category? Determine whether the person is legally treated as an independent contractor, worker or employee for the purpose of the relevant rule.
- What does the clause do? Read its operative verbs. A restriction on soliciting a client may be treated differently from a restriction on accepting that client's business or working for a competitor.
- When does the rule apply? Check the operative date and any transition provisions.
The label in the contract is only one part of the analysis. A provision called a non-solicitation clause may fall within a broader statutory definition of a restrictive covenant.
Federal and state rules operate alongside each other. The US Federal Trade Commission states that its Noncompete Rule is not in effect and is not enforceable. That status does not supply a national answer for contractor non-solicitation clauses; state law and the facts of the agreement still need review.
Avoid relying on an obsolete or future rule for the current engagement. Record the version of the law reviewed, the contractor's location, the worker's status and the conduct at issue. A conclusion drawn for an employee, a worker and an independent contractor may differ within the same jurisdiction.
A dated US example: Washington
Washington illustrates why the label, worker category and operative date must be checked separately. Under the statute in effect until June 30, 2027, Washington defines a nonsolicitation agreement as an agreement between an employer and employee. Its noncompetition definition expressly includes restrictions on independent contractors and on accepting or transacting business with a customer. A contractor clause labelled “non-solicitation” therefore does not settle its treatment under the statute.
The current contractor provision uses an annually adjusted earnings threshold. The statute's base dollar figure is not the current adjusted threshold, so no current numerical threshold is stated here. The applicable Washington figure for the relevant year must be checked before anyone relies on the threshold.
The enacted text effective June 30, 2027 differs materially. It continues to include contractor restraints and customer acceptance within the noncompetition definition, while the new nonsolicitation definition remains employer–employee and excludes acceptance or transaction of business. From that date, the statute also provides that noncompetition covenants, including existing ones, become void and unenforceable, with separate treatment for proceedings commenced before the effective date. The future text must not be applied to an earlier agreement or dispute.
Washington also restricts out-of-state adjudication and choice of law for noncompetition covenants signed by certain Washington-based workers. That provision does not itself establish the same rule for every nonsolicitation agreement.
For a Washington-based engagement, check the rule applicable to the relevant date:
- Confirm the statute operating when the clause was signed and when the alleged conduct occurred.
- Confirm the worker's actual category.
- Identify the protected customers and the exact prohibited conduct.
- Verify any current earnings threshold from the applicable Washington source.
- Review the governing-law and forum provisions.
UK and European rules need local review
The available official UK evidence addresses employment status rather than the enforceability of a specific contractor non-solicitation clause. Great Britain government guidance says employment-rights status depends on the actual arrangement and that only a court or employment tribunal makes the final status decision. The guidance also states that greater exclusivity is generally more consistent with employee status, although exclusivity alone is not decisive for worker status.
That guidance supports a working-relationship review. It does not decide the validity of a particular contractor non-solicitation clause.
For a European engagement, there is no supported EU-wide answer in this article. Contractor status, restrictive-covenant rules and the treatment of a particular non-solicitation clause depend on the member state and potentially the facts of the engagement. Do not rename a national rule as an EU rule or assume that one country's treatment applies across Europe.
Before signing or enforcing a cross-border clause, obtain a local-law review of:
- The governing law and dispute forum.
- The contractor's working location and the relevant connection to the jurisdiction.
- The worker's legal category.
- Whether the clause restricts solicitation, acceptance or competition.
- The protected contacts and duration.
- Any formalities, thresholds or statutory exceptions.
- The date on which the reviewed rule applies.
That review may support enforcement, require narrower wording or show that the restriction should not be used in that arrangement. It cannot safely be replaced by a template or a conclusion drawn from another country.
Could the restriction affect contractor status?
A non-solicitation term does not by itself change a contractor's status. It may, however, become relevant evidence when reviewers assess the whole working relationship, especially where it limits the contractor's freedom to work with others or makes the arrangement more exclusive. The applicable classification system and jurisdiction still determine the outcome.
Review the whole working relationship
US federal tax classification and Great Britain employment-rights status use different tests. A review should therefore identify which system applies before drawing a conclusion.
Under IRS guidance, US federal employment-tax classification depends on all evidence of control and independence. The IRS groups that evidence into behavioral control, financial control and the relationship between the parties. A written contract is one factor, not a conclusive answer. Financial-control evidence includes the extent to which the contractor makes services available to the relevant market.
That makes the contractor's actual ability to serve others relevant. A clause that identifies a limited set of protected relationships may leave ordinary outside work available. A restriction that prevents the contractor from working with any company in the relevant market may require closer scrutiny. The evidence does not establish that a non-solicit alone causes reclassification; it supports reviewing the restriction alongside actual autonomy and market access.
Great Britain government guidance treats status as fact-specific and ultimately for a court or employment tribunal to decide. It says a more exclusive arrangement is more consistent with employee status, while noting that exclusivity is not decisive for worker status. The restriction should therefore be reviewed against the working arrangement as it operates, not merely against the wording of the agreement.
Ask both sides to document:
- Who controls the work, schedule, methods and performance.
- Who supplies the tools, equipment and operating costs.
- Whether the contractor can serve other clients and related businesses.
- Whether the company requires exclusivity beyond the engagement.
- Whether the contractor has business independence, financial risk and an established market presence.
- Whether the non-solicitation restriction reflects the actual commercial relationship or only the document's terminology.
- Whether the restriction is administered as a general bar on outside work or as a defined protection for specific relationships.
Do not use a label such as “independent contractor” or “non-solicitation” as the conclusion of the review. The contract, actual practices, tax classification, employment-rights status and applicable local rules must be assessed in their proper context. A restrictive term that matches the actual working relationship may document an existing commercial limit; one that conflicts with the way the contractor works can expose the mismatch between the agreement and practice.
What each side should check before signing
The company should sign a contractor non-solicitation clause only after identifying the relationship or information at risk, defining the conduct and obtaining a review under the law that applies. The contractor should test the clause against existing clients, separate business, ordinary future work and the law governing the engagement. A signed template does not settle those questions.
The company's review
Start with the commercial reason for the restriction. Identify the specific clients, prospects, team members or suppliers the company wants to preserve and the harm it expects to prevent. A clause that covers every contact without an identified business need gives the contractor little confidence that its ordinary work will remain available.
Then check the following:
- Protected interest: Does the company rely on confidentiality, an active client relationship, team continuity or another legitimate interest?
- Covered contacts: Does the clause identify the people or organizations it covers, including the period and material dealings that connect them to the engagement?
- Prohibited conduct: Does it distinguish active solicitation from general advertising, an unsolicited approach, acceptance of business and use of protected information?
- Exceptions: Does it account for pre-existing relationships, separate businesses, contacts introduced by third parties and ordinary future work?
- Limits: Are the duration, trigger, territory or relationship boundaries connected to the identified interest?
- Information controls: Are access permissions, confidentiality duties and document handling already sufficient for the information exposure?
- Local law: Have the governing-law clause, worker category, effective date, formalities and any local restrictions been reviewed?
- Administration: Can the company collect and retain the records needed to administer the clause without creating an unreasonable burden?
The company should also document the restricted contacts at the point of engagement. If the clause covers only relationships the contractor handled, a project or account record can prevent later disputes about whether a contact fell within the restriction. Where the contractor has a separate business, the agreement should state whether that business may serve third parties and how company opportunities will be distinguished.
A broad restriction should require a stronger explanation than a narrow one. If the company has not identified the risk, adding a clause does not cure the underlying operational problem.
The contractor's review
The contractor should read the clause against the work it performs and the relationships it already has. The relevant question is not whether the restriction is enforceable in general; it is whether this agreement creates an acceptable and clear limit on the contractor's business.
The review should cover:
- Existing work: Which current clients, prospects, suppliers or collaborators were served before the engagement? Attach or record the relevant contacts where the clause permits exceptions.
- Separate business: Does the agreement preserve the contractor's right to serve other clients or operate another company? Are company opportunities and the separate business clearly distinguished?
- Ordinary marketing: Does the clause treat general advertising as solicitation? Is targeted outreach addressed separately?
- Unsolicited business: If a protected client approaches the contractor, may the contractor respond or accept the work? A restriction on solicitation does not necessarily answer a restriction on acceptance.
- Protected information: Which materials are covered, how may the contractor use them, and what must happen to them when the engagement ends?
- Duration and scope: When does the restriction begin and end? Does it cover relationships or entire markets?
- Breach consequences: What remedies does the agreement create, and which internal process applies before a dispute is escalated?
- Governing law: Does the clause send the contractor to a jurisdiction connected to the engagement, and what local review has been completed?
- Contractor status: Does the restriction match the actual working relationship, or does it introduce exclusivity or control inconsistent with the claimed independent arrangement?
You should however be mindful that it would be unwise to adopt the stance that ‘one contract fits all’.
— James Denton, solicitor, GHP Legal
That is a practitioner view from a UK clinic question, not a general statement of contractor law. Its practical point is the need to tailor the scope to the role and relationship.
The contractor should negotiate ambiguous terms before signature. Clear exceptions, defined contacts and a documented pre-existing-business schedule reduce uncertainty about who the restriction reaches. Both sides should retain the signed agreement and any schedules with the engagement records.
What to do when a breach is suspected
Treat a suspected breach as a set of facts to verify, not as a conclusion established by a customer or team member's departure. Preserve the relevant records, identify who initiated the approach, examine any use of protected information and separate contact from causation and loss before taking action.
Preserve the approach and information trail
The first task is to establish the sequence of events. Preserve messages, emails, call records, contact notes, meeting records and any relevant system access history that the parties are permitted to retain. Do not alter records or access a contractor's or client's account without a lawful basis.
The evidence should answer separate factual questions:
- Which clause is alleged to apply, and what conduct does it prohibit?
- Who contacted whom first?
- Did the contractor make an affirmative approach, or did the client, prospect or former team member initiate contact?
- Was the approach direct, indirect or part of general advertising?
- Did the contractor use protected information to identify or approach the contact?
- Was any new business accepted after the approach?
- What happened after the relationship ended?
These records should be organized by contact and event rather than combined into a general narrative. Separate the original approach from later communications, and identify the source of any information about the protected contact.
The New Hampshire contractor dispute illustrates the procedural distinction. The court treated well-pleaded allegations as true when deciding an early motion. An allegation that confidential information had been used to solicit a named client survived that stage, but it was not a final finding that the information was used or that the clause had been breached. The later evidence still had to establish the facts.
A suspected information breach deserves a separate record. Identify the document, system entry or introduction that provided the information, who could access it and whether the approach used facts that were not otherwise available to the contractor. Starting another business does not, by itself, establish misuse of confidential information.
Separate contact, causation and loss
A client or team member's departure does not establish that the contractor solicited them. It may reflect dissatisfaction, another opportunity, price, service or a decision made without any contractor involvement.
In the unpublished Michigan contractor dispute, unrebutted affidavits attributed vendor departures to dissatisfaction with the company's practices rather than the contractor's solicitation. The court found no causally linked damages on that solicitation claim. The opinion was unpublished and addressed that dispute's particular evidence; it did not establish a general rule for other departures.
Assess the suspected breach in separate stages:
- Contact: Did the protected client, prospect or team member leave or change the relationship?
- Solicitation: Did the contractor take an affirmative step prohibited by the clause?
- Information use: Did the contractor use protected information in making the approach?
- Causation: Did that conduct cause the contact to leave or redirect its business?
- Loss: What revenue, opportunity or other harm can be linked to the conduct, and how will it be measured?
- Defences and exceptions: Does the contract exclude the contact, permit the conduct or place the burden elsewhere?
Keep damages theory and conduct theory distinct. In the same Michigan case, a distinct non-compete claim proceeded on the basis of lost clients and related revenue, although the amount remained uncertain. That was not a finding of non-solicitation damages.
Customer loss alone does not justify an accusation. The company should identify the allegedly prohibited conduct; the contractor should preserve the contact history and records that bear on it.
Discuss revision, release and local remedies
Once the record is clear, the parties can compare the practical options without prejudging them. A clarification may resolve an ambiguous contact category. A written release may narrow a disputed restriction. Revision may suit a continuing relationship; litigation may suit a dispute that cannot be resolved commercially.
Check the agreement for:
- Notice and cure procedures.
- Internal escalation or mediation requirements.
- Revision, waiver and release provisions.
- Clauses concerning continuing work and access to systems.
- The agreed forum, governing law and dispute-resolution route.
- Contractual remedies and any limits on them.
Local law determines what remedies are available and what each party must prove. In the New Hampshire dispute, the company sought injunctive relief and contract remedies, but the early order did not award them. That outcome does not establish that either remedy was unavailable; it confirms that the availability and threshold for relief require separate review.
Before escalating, obtain advice on the applicable jurisdiction and consider how each route may affect a live client relationship, confidential information and costs. Preserve the records while the facts and available remedies are assessed.
Frequently asked questions
Can a contractor keep working with a client they knew before the engagement?
Sometimes, depending on the clause and applicable law. A well-drafted agreement can preserve work the contractor performed before the engagement or otherwise exclude contacts it never handled. The Michigan contractor dispute included a case-specific exception for contacts where the contractor established no involvement and no knowledge of related confidential information.
The contractor should identify relevant pre-existing relationships before signing. The company should then review whether the exception covers those contacts and whether separate confidentiality duties apply to information obtained during the engagement. Neither party can assume that every pre-existing client remains available for future work.
Can the clause stop a client from approaching the contractor?
A clause that restricts solicitation normally regulates the contractor's conduct; it does not necessarily prevent a client from contacting the contractor independently. If the clause also prohibits accepting or transacting business with the protected client, it may affect what the contractor may do after an unsolicited approach. That broader wording raises separate questions under the applicable law.
The contract should distinguish active solicitation from an unsolicited request, acceptance of work and use of protected information. The New Hampshire dispute concerned separate confidentiality, non-compete and non-solicitation provisions, while the Massachusetts pleading decision considered a clause covering both solicitation and acceptance. Neither case establishes a universal result across jurisdictions.
Is there a standard reasonable duration?
No universal period applies to independent-contractor non-solicitation clauses. The available evidence does not establish a generally reasonable number of months or years. Duration should be connected to the protected relationship or information, the trigger that ends the engagement and the rule applicable where the contractor works.
A Massachusetts clause applied for one year after termination, but that was one contract term in a pleading-stage decision. It is an example, not a recommended duration. Parties should document the business reason for the period and obtain a local-law review rather than copying a template.
Is a non-solicitation agreement the same as a non-compete?
No. A non-solicitation clause targets attempts to divert defined relationships. A non-compete restricts work for competitors or participation in competing business. A non-dealing clause may also restrict accepting business from a protected customer, placing it between those two forms in practical effect.
The document's title does not decide its legal treatment. Washington's statute illustrates the issue: under the provisions effective until June 30, 2027, its nonsolicitation definition refers to employer–employee agreements, while its noncompetition definition includes independent contractors and restraints on customer acceptance. The clause's operative verbs, protected interest and governing law must be reviewed.
Can a template settle enforceability across countries?
No. A template can organize the commercial intent, but it cannot settle enforceability for every jurisdiction. Before signing, check the governing law, the contractor's location and actual worker category, the clause's substance, its effective date, the protected interest and any local formalities or statutory restrictions.
The evidence here includes Washington-specific law and Great Britain employment-status guidance. It does not establish a general EU rule. Cross-border contractor clauses need review in the jurisdictions connected to the engagement, and any material change in the relationship may require a new review.
A practical way to keep the restriction proportionate
A proportionate contractor non-solicitation clause starts with a specific exposure and limits its reach to that exposure. Before drafting language, complete the following review:
- Identify the protected interest. Name the client relationship, prospect, team or supplier relationship, or confidential information that the company needs to protect.
- Separate information risk from relationship risk. Use confidentiality duties, access controls and document-handling measures for information exposure. Consider a targeted non-solicitation term for active diversion of a defined relationship.
- Define covered contacts. Tie the clause to material dealings, the contractor's role and the period of the engagement rather than every customer or contact associated with the company.
- Record pre-existing relationships. Document the contractor's existing clients, separate business and other outside work so the clause does not capture contacts the contractor never handled.
- Separate conduct categories. Address direct and indirect solicitation, general advertising, unsolicited contact, acceptance of business and use of protected information. Do not treat every customer departure as solicitation.
- Connect the limits to the risk. Set the duration, trigger and geographic or relationship scope around the protected interest. Do not copy a period or territory from another contractor agreement.
- Check enforceability inputs. Review the governing law, worker's actual category, protected interest, operative date, consideration and formalities under the relevant jurisdiction.
- Test the arrangement as a whole. Compare the clause with actual control, exclusivity and the contractor's freedom to serve the market. The term alone does not determine contractor status.
- Plan for evidence and disputes. Preserve contact and information records, and define notice, revision, release and escalation procedures before a suspected breach emerges.
If the company cannot identify the protected relationship or information, it should reconsider the clause. Before signing, both sides should be able to distinguish covered contacts from the contractor's pre-existing business.
Sources
- USPTO, Trade Secret Intellectual Property Toolkit
- Michigan Court of Appeals, Brooklyn Outdoor LLC v. Vanderbush, No. 363387, unpublished opinion
- US District Court for the District of Massachusetts, No. 1:19-cv-12036
- US District Court for the District of New Hampshire, No. 21NH132
- Washington State Legislature, Revised Code of Washington Chapter 49.62
- US Federal Trade Commission, Noncompete Rule status
- US Internal Revenue Service, Topic 762: Independent contractor or employee
- UK Government, Employment status and employment rights guidance
- GHP Legal, Q&A: How can we stop freelancer from stealing our clients?
- Balch & Bingham LLP, Looking for Certainty: Protection from competition following the FTC’s rule prohibiting non-compete clauses