Non-compete agreement in a contract signed as an independent contractor

[johnnylegend201]

What is the name of your state (only U.S. law)?
Oregon

Hi all,
I just signed a contract with a small company based in Philadelphia. Part of the contract was a non-complete clause (text below)

Concurrently another company I had approached asked me to work with them, they are based in Atlanta. I had emailed them previously.

My reading of the situation is I cannot work for these two companies at the same time, even though I am part-time, independent contractor (1099 status) for both of them.

My recourse would be to approach Company A (with whom I signed a contract) and ask for a contract modification allowing me to work for Company B insofar as it does not conflict with my work with Company A.

Would y'all agree with that assessment?

Here is the full text of the non-compete clause:

NON-COMPETE
Contractor agrees and covenants that because of the confidential and sensitive nature of the Confidential Information and because the use of, or even the appearance of the use of the Confidential Information in certain circumstances may cause irreparable damage to [Company A] and its reputation, Contractor shall not, until the expiration of two (2) years, and within the territories, states, or cities where [Company A] operates, after the termination of the relationship between Contractor and [COMPANY A], engage, directly or indirectly, or through any corporations or associates in any business, enterprise, or employment, which is directly competitive with [COMPANY A].

 

[swalsh411]

My first question would be are they "direct competitors"?

 

[latigo]

What is the name of your state (only U.S. law)?
Oregon

Hi all,
I just signed a contract with a small company based in Philadelphia. Part of the contract was a non-complete clause (text below)

Concurrently another company I had approached asked me to work with them, they are based in Atlanta. I had emailed them previously.

My reading of the situation is I cannot work for these two companies at the same time, even though I am part-time, independent contractor (1099 status) for both of them.

My recourse would be to approach Company A (with whom I signed a contract) and ask for a contract modification allowing me to work for Company B insofar as it does not conflict with my work with Company A.

Would y'all agree with that assessment?

Here is the full text of the non-compete clause:

NON-COMPETE
Contractor agrees and covenants that because of the confidential and sensitive nature of the Confidential Information and because the use of, or even the appearance of the use of the Confidential Information in certain circumstances may cause irreparable damage to [Company A] and its reputation, Contractor shall not, until the expiration of two (2) years, and within the territories, states, or cities where [Company A] operates, after the termination of the relationship between Contractor and [COMPANY A], engage, directly or indirectly, or through any corporations or associates in any business, enterprise, or employment, which is directly competitive with [COMPANY A].

My advice is to keep mum concerning any future association with the Atlanta based business. Chances are company A will never learn of it and even if it does, the only negative consequence that I see would be company A terminating your services.

And I say that advisedly. If you wish to know why, ask I will explain my reasons.

 

[johnnylegend201]

Yes. they are direct competitors doing the same business.

Latigo, I would like to hear your reasons.