Employees vs. contractors

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LinkedIn, Facebook and non-competes: Where's the line?

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wizard_of_oz 16th Jun 2010

I'm not a lawyer and I don't play one on TV.

Legally, contractors are independent businesses that are vendors to the client business. There is nothing preventing you from soliciting a former employer's janitorial service or plumber. If they do argue that luring away independent contractors is taking employees away, then they might find that the IRS is now interested in whether those "contractors" should have been W-2 employees.

Now, most non-competes prevent soliciting the former employer's customers, but these are the former employer's vendors.