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Freelance non-compete?
I have a dillema. I have recently been approaches by a company to work with on a regular basis as a freelancer. This sounds splendid and all, but one note raises a red flag. The company is asking me to sign a non-compete clause. Basically, it would bar me from working with other companies in town, working with their clients even if I am not a freelancer with them, and any work I come across on my own must be cleared with them even if it is not a client of theirs.
The question I’m wondering is if this is a regular practice or if it is something that should raise red flags? I certainly understand signing a NDA, but hadn’t heard of a form like this for a person working strictly as a freelancer. Any thoughts? Thanks!
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23 Replies
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[Adam Erickson] “Basically, it would bar me from working with other companies in town, working with their clients even if I am not a freelancer with them, and any work I come across on my own must be cleared with them even if it is not a client of theirs.”
If they won’t let you work for any other clients, then you’re not a freelancer, your a staffer and they should withhold taxes and give you benefits.
If they don’t want to do that then you should decline their offer, and tell them why.
Also, you should maybe let your local labor & tax departments know. It raises a red flag that they’re probably not doing some other things that they’re supposed to.
Arnie
Now in post: Peristroika, a film by Slava Tsukerman
https://www.arniepix.com/blog -
[Adam Erickson] “The question I’m wondering is if this is a regular practice or if it is something that should raise red flags?”
No, this is NOT standard procedure for freelancers. Basically they would lock you in to working with them and nobody else. That’s not the definition of a freelancer, that’s an employee.
NDA’s are standard procedure, non-compete is not. Do not sign that.
Walter Biscardi, Jr.
Biscardi Creative Media
HD and SD Production for Broadcast and Independent Productions.STOP STARING AND START GRADING WITH APPLE COLOR Apple Color Training DVD available now!
Read my Blog!
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walk away – or ask for a LOT of money 🙂
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Mike,
The OP is a friend and I know for a fact that the day rate that they have offered wouldn’t put a tank of gas in a Yugo.
I read this Non-compete this afternoon and had a good laugh. I hope that others read this because this is the second time that I have heard of companies doing something similar. I really hope that this isn’t something that is starting to catch on.
K
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I ended up not only walking away, but running.
They were offering $8/hr for shooting and editing. Apparently “that’s the going rate in this town…”
…or so I’m told. Although I’m pretty sure I’ve gotten more for other jobs, so it’s better to just stay solo in this one. Thanks for the advice everyone!
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[Adam Erickson] ”
They were offering $8/hr for shooting and editing. Apparently “that’s the going rate in this town…””Ha ha haaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa! No wonder they wanted to lock you up in a non-compete because the first time you took a freelance job somewhere else, you would wonder why you’re getting paid so low.
Walter Biscardi, Jr.
Biscardi Creative Media
HD and SD Production for Broadcast and Independent Productions.STOP STARING AND START GRADING WITH APPLE COLOR Apple Color Training DVD available now!
Read my Blog!
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[Adam Erickson] “They were offering $8/hr for shooting and editing. Apparently “that’s the going rate in this town…” “
You’ll find higher paying work on craigslist. Please tell me this is a joke. There isn’t a town in the western hemisphere that that could be a “going rate.” Probably not in most other hemisphere’s either.
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[Craig Seeman] “There isn’t a town in the western hemisphere that that could be a “going rate.””
Craig,
Its a place called “Lonesome Town,” cuz I can assure you, there won’t be any women looking to date a professional bringing home the bacon at eight bucks an hour.
David
David Roth Weiss
Director/Editor
David Weiss Productions, Inc.
Los AngelesPOST-PRODUCTION WITHOUT THE USUAL INSANITY ™
A forum host of Creative COW’s Apple Final Cut Pro, Business & Marketing, and Indie Film & Documentary forums.
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Unfortunately, the offer was not a joke. Thankfully, the going rate in this town is higher than $8/hr. I’m not sure what it is specifically, but I know it’s more than the average fast food rate! 🙂
Adam C. Erickson
Adam C. Erickson Productions
https://www.adamcerickson.com -
That’s North Carolina for you. Same thing here in Wilmington. Client drives a Hummer around and has all these deals in the works but is hesitant to pay your day rate for a professional when a friend of his will do for a 6 pack. Go figure.
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