Freelance Consultants Not Bound By Non-Competition Agreement

Freelance consultants may often be faced with a decision to enter into contracts which purport to limit their ability to seek out what might be construed as competitive work. In a competitive industry in which the consultant's services are in high demand, there may be little incentive to do so unless such a term is specifically negotiated as part of the engagement. At the same time, employers of freelance consultants may wish to impose non-competition terms into their agreements in order to protect proprietary concepts and established business relationships. A recent trial decision demonstrates just how difficult it can be to enforce a non-competition term in an agreement with a consultant.