Non-Compete and Non-Solicit Checklist

5 things to check in a client's non-compete clause before you sign.

Use this checklist before signing any Master Services Agreement or independent contractor agreement provided by a client. As a freelancer, protecting your right to work for other clients in your industry is worth being firm about.

1
Check for absolute industry bans. Language preventing you from working with "any competitor" locks you out of your own livelihood. Cross out broad industry bans, or agree only to avoid a short, specific list of 2 to 3 named direct competitors.
2
Verify the time limit. A non-compete extending years past the project is unreasonable for a contractor. Negotiate it down, ideally ending when the contract terminates, or at most 3 to 6 months after.
3
Check the geographic scope. A local client shouldn't restrict you globally. Limit the scope to the client's actual operating area, and push back hard on geographic limits for remote work.
4
Review the non-solicit scope. Preventing you from actively poaching their employees or customers is reasonable. Make sure it doesn't also ban a customer approaching you independently, the clause should say "actively solicit or recruit," not block passive inbound business.
5
Watch for IP contamination. Confirm the contract doesn't claim ownership of your pre-existing tools, frameworks, or code just because you used them on the project. Insert a clause excluding your "background IP" from the non-compete and ownership provisions.

Before you sign

Run the rest of the contract through the full contract checklist, and if you need to draft your own terms from scratch, start with the contract generator.

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