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Roger, Attorney
Category: Business Law
Satisfied Customers: 30897
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I have a contractor who carries the payroll for a 1099 subcontractor for a set h

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I have a contractor who carries the payroll for a 1099 subcontractor for a set hourly management fee. I am interested in carrying the payroll for the 1099'er and reducing the contractor's management fee (the contractor does not provide any other service). Because of the 'non-solicitation' provision in our agreement, the contractor is telling me I can't carry the payroll. Is carrying the payroll viewed as violating a non-solicitation agreement? I'm still going to be paying a fee to the contractor; it will just be less then it is today. Thanks.

Hi - I practice in Tennessee.


If you're taking business away from the contractor by dealing with the contractor's customer, it is most likely a violation of the non-solicitation agreement. Therefore you could be legally liable if you violate the agreement.


Since I haven't seen the agreement, I can't give you a specific response, but every non-solicitation or non-compete agreement I've ever seen prohibits something like this.

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