The qualification of a salaried worker or an independent contractor does not affect the application of a non-compete agreement under Texas law. It is important for employers and workers to understand that there is a federal government that cannot compete. This could result in the worker being more like a worker than an independent contractor. At Wood Edwards LLP, we have decades of experience helping employees, independent contractors and employers resolve competition contract disputes. We`re ready to help, too. To start, simply fill out the abbreviated form below (or call (214) 382-9789) and a lawyer from our firm will contact you shortly to discuss your case. An applicable competition ban agreement allows the employer to exercise some control over the other persons for whom the independent contractor works. Even where the independent contractor works. The existence of a non-competition agreement – based on the concrete facts of the employer-worker relationship – could therefore mean that the worker should indeed be considered a worker for tax and social purposes. One of the most misunderstood and important employment issues is whether a person is an independent worker or contractor.
The legal distinction is important insofar as the employer-employee relationship imposes certain obligations on the employer in relation to labour law, labour tax and pension law. Thus, the employer is generally liable for the negligence of its employee, while the employer who hires an independent is not. Therefore, misclassifying a worker as an independent contractor can result in significant liability for the employer. It is important to note that simply qualifying a worker as an « independent contractor » is not sufficient to create an independent contracting relationship. Instead, Texas courts apply the « right to control, » which essentially states that a person is an employee if the person who hired him has the right to control the worker`s progress, details and means/methods of the work. In addition, the test examines the « right to control, » not whether the control was actually exercised. In the application of the « right to control, » Texas courts generally decide that the person is a worker, unlike an independent contractor, if the person who hired the worker: (1) dictates when and where to start and stop the work; (2) Regulates the individual`s working hours; (3) controls the amount of time the individual spends on certain aspects of the work; and (4) provides tools, equipment, uniforms, business cards and other necessities necessary to carry out the work. Other factors that may be considered by Texas courts when concluding that a person is a worker, unlike an independent contractor, include whether the person who hired the person may require compliance with instructions: (1) require compliance with instructions; (2) provide training; (3) integrates the services of the individual into the business; (4) prevent the person from outsourcing his services to another person; (5) hires and/or pays the individual`s assistants or assistants; (6) an ongoing relationship with a single service; (7) requires individuals to work full-time rather than allowing individuals to control their own schedules; (8) the individual pays weekly or monthly, unlike a specific service; and (9) limits the individual`s right to work for others.