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.

View Moira Alexander’s article as it’s published on Source link