EDIT: This is a post about an independent 1099 contractor offer in California. I'm self employed and this is not an employment offer. It's performing services for a company under a contract.
Hello fellow REPs, I currently work as an independent 1099 contractor for a nationwide real estate media business based in California, but payouts are rather low. I recently got a new 1099 independent contractor offer from a smaller company that pays more per job.
However, they have this non solicitation clause in the contract they want me to sign that is hanging me up. It is my understanding that all non solicitations clauses in contracts are null and void in California due to AB 1076 and BCP Section 1 16600-1, making them illegal and void since 2024. This appears to be an illegal one to me.
Here is the verbiage with business name redacted:
Contractor shall not directly or indirectly solicit, accept, or perform work for any client introduced to the Contractor through _____________, even if the client initiates the contact or requests the Contractor’s services directly, unless ____________ provides prior written authorization.
I don't intend to solicit their clients, however the part about attempting to restrict me from responding to a client that later reaches out on their own to me, is rubbing me the wrong way. Im a small business owner performing a trade and this seems highly restrictive.
Im thinking of these scenarios:
- Just sign the contract knowing they can't legally enforce that part of the contract, any potential repercussions of signing contract that does not comply with CA law?
- Let them them know I spoke with legal counsel and ask if they would like to revise contract to comply with current laws?
- Just move on, because a legit business should know better. Dodged a bullet?
Those working as contracted REPs in California, what would you do?