Freelance IT professionals face several hurdles when branching out on their own, including legal liabilities. If you’re thinking about becoming a consultant, here are three big ones to watch out for.
2. Non-compete agreement violations: Although becoming less common (and in some states, illegal), non-competes are still prevalent in the technology industry. If you have ever signed a non-compete in the past, you might be banned from soliciting business from companies you have worked with while under contract. It can be very risky to try to interpret non-compete agreements on your own, and it is recommended that you engage the help of a lawyer to decipher current and former contracts, and to figure out appropriate actions. It’s important to mention that when it comes to non-compete contracts, the laws can vary by state. In most cases, a state will enforce non-competes if they seem reasonable and meet standards that are spelled out in statutes and cases. If you are found to have violated a non-compete contract in a state where they are enforceable, you may be sued for damages. Should that happen, an errors and omissions policy may be able to cover the legal costs, said Somers.
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