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Contract with Independent Contractor with Confidentiality Agreement and Covenant Not to Compete

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Contract with Independent Contractor with Confidentiality Agreement and Covenant Not to Compete

Independent Contractor agreement made on the (date), between of referred to herein as Contractor, and a corporation organized and existing under the laws of the state of , with its principal office located at referred to herein as Employer.

Whereas, Employer owns and operates a at the address set forth above, and Employer desires to have the following services performed at Employer's place of business ; and

Whereas, Contractor agrees to perform these services for Employer under the terms and conditions set forth in this Contract.

Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Description of Work

The work to be performed by Contractor includes all services generally performed by Contractor in Contractor's usual line of business, including, but not limited to, the following:

2. Payment

Employer will pay Contractor $ for the work to be performed under this contract, according to the following schedule:

3. Relationship of Parties

The parties intend that an independent contractor-employer relationship will be created by this Contract. Employer is interested only in the results to be achieved, and the conduct and control of the work will lie solely with Contractor. Contractor is not to be considered an agent or employee of Employer for any purpose. Employer is not responsible for withholding, and shall not withhold, FICA or taxes of any kind from any payments which it owes Contractor, and the employees of Contractor are not entitled to any of the benefits that Employer provides for Employer's employees. It is understood that Employer does not agree to use Contractor exclusively. It is further understood that Contractor is free to contract for similar services to be performed for other employers while under contract with Employer.

4. Employees of Contractor

Contractor shall be solely responsible for paying its employees. Contractor shall be solely responsible for paying all FICA and other taxes, workers' compensation, unemployment compensation, medical insurance, life insurance, paid vacations, paid holidays, pension, profit sharing and other benefits for the Contractor and his employees, servants and agents.

5. Liability

The work to be performed under this Contract will be performed entirely at Contractor's risk, and Contractor assumes all responsibility for the condition of tools and equipment used in the performance of this Contract. Contractor will carry, for the duration of this Contract, public liability insurance in an amount acceptable to Employer. Contractor agrees to indemnify Employer for any and all liability or loss arising in any way out of the performance of this Contract.

6. Duration

Either party may cancel this Contract on days' written notice; otherwise, the Contract shall remain in force for a term of from the date hereof.

7. Confidentiality

Contractor agrees that: (a) all knowledge and information that Contractor may receive from Employer or from its employees or other Contractors of Employer, or by virtue of the performance of services under and pursuant to this Agreement, relating to such as designs, customer information, products, processes, machinery, apparatus, prices, discounts, costs, business affairs, future plans, or technical data, belong to Employer or to those with whom Employer has contracted regarding such information; and (b) all information provided by Contractor to Employer in reports of work done, together with any other information acquired by or as direct result of employment as a Contractor by Employer and during the term of such employment, shall be regarded by Contractor as strictly confidential and held by Contractor in confidence, and solely for Employer's benefit and use, and shall not be used by Contractor or directly or indirectly disclosed by Contractor to any person whatsoever except to Employer or with Employer's prior written permission.

8. Services after Termination and Covenant Not to Compete

Contractor agrees that, for period of years following the termination of this Agreement, Contractor will not directly or indirectly:

A. Perform any similar services for any person or firm engaged in the business of in County, (state).

B. If any restriction set forth in this Section 7 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

C. The restrictions contained in this Section 7 are necessary for the protection of the business and goodwill of the Employer and are considered by Contractor to be reasonable for such purpose. Contractor agrees that any breach of this Section 7 will cause the Employer substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Employer shall have the right to seek specific performance and injunctive relief.

9. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

10. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

11. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

12. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

13. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

14. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

15. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

In this contract, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.

(Name of Employer)

By:

Enter text✕

What this combined independent contractor, confidentiality, and non-compete agreement is

A Contract with Independent Contractor with Confidentiality Agreement and Covenant Not to Compete is a single written agreement that defines a contractor relationship, protects confidential information, and restricts competitive activity after the working relationship ends. It sets the scope of services, payment terms, independent-contractor status, intellectual property ownership, confidentiality obligations, the duration and geographic scope of any non-compete or non-solicit restrictions, and remedies for breach. Well-drafted versions balance enforceability and reasonableness to comply with state law while preserving business interests and clarifying expectations between parties.

Why use a single combined agreement

Combining contractor terms with confidentiality and non-compete clauses creates a clear, enforceable framework that reduces disputes, protects trade secrets, and limits post-engagement competitive risk while documenting tax and liability allocations.

Why use a single combined agreement

Who typically uses this combined agreement

Typical users include small businesses, startups, hiring managers, and independent professionals who need clarity on scope, IP, and post-engagement restrictions.

The document is also used by agencies and professional services firms that must protect client lists and confidential methodologies while using outside contractors.

Core sections to include in a professional combined agreement

A comprehensive contract organizes business terms, confidentiality protections, post-engagement restraints, and procedural provisions so obligations are clear and enforceable.

Engagement Scope

Describe services, deliverables, milestones, and acceptance criteria. Precise scope reduces scope-creep disputes and informs payment timing for deliverables and milestones.

Payment Terms

Specify fees, invoicing schedule, expenses, and withholding responsibility. Clarify whether contractor supplies invoices and whether reimbursements require receipts or prior approval.

Independent Contractor Status

State contractor relationship explicitly and allocate tax and benefits responsibility. Indicate that contractor controls methods of performing services to reduce misclassification risk.

Confidentiality / NDA

Define confidential information, permitted disclosures, duration of confidentiality, and exceptions such as publicly known information or court-ordered disclosures.

Covenant Not to Compete

Limit duration, geographic scope, and restricted activities to what is reasonable under applicable state law to improve enforceability and avoid overbroad restraints.

IP Ownership and License

Assign ownership or grant licenses for work product and pre-existing IP. Include moral rights waiver where appropriate and specify delivery of source files if required.

Essential information elements to include

Party names: Full legal names
Addresses: Street, city, state, ZIP
Effective date: MM/DD/YYYY
Term length: Fixed or ongoing
Compensation: Amount and schedule
Signatures: Sign and date

Step-by-step: preparing and executing the agreement

Follow these steps in order to draft, review, and complete the combined contractor/confidentiality/non-compete agreement.

  • 01
    Draft: Assemble scope, compensation, confidentiality, IP, and restraint clauses.
  • 02
    Review: Have legal or HR review for state-specific enforceability and reasonableness.
  • 03
    Obtain signatures: Use eSignature or wet signature; include dates and printed names.
  • 04
    Distribute: Provide each signer a signed copy and retention instructions.

Recommended digital workflow settings

Configure your online signing workflow to capture intent, attribution, and an audit trail that supports enforceability.

Field Configuration
Signature field Required for each party
Date field Auto-fill or require signer entry
Initials Place at key clause pages
Audit trail Enable IP, timestamp, and action log

Digital signing and security requirements

Use a signing platform that records intent, provides an immutable audit trail, and supports authentication appropriate to the contract's sensitivity.

  • Authentication: Email, SMS, or advanced methods
  • Audit Trail: IP, timestamp, and actions
  • Encryption: TLS in transit, AES-256 at rest

Ensure the vendor supports ESIGN/UETA compliance, optional BAA for HIPAA-covered data, and retention of records in a tamper-evident format.

Typical e-signature flow for this agreement

A standard online signing process captures the document, places fields, authenticates signers, and preserves a completion record.

  • Upload: Sender uploads the finalized contract document
  • Place fields: Assign signature, date, and initials fields for each signer
  • Send: Distribute via secure email link or bulk send
  • Complete: Signers authenticate, sign, and receive copies with audit trail

Key timing and notice deadlines to include

Specify dates and notice periods to avoid disputes over obligations, termination, and post-contract restrictions.

Effective Date:

Date when obligations and confidentiality begin

Term Length:

Contract duration or project end date

Non-Compete Duration:

Number of months post-termination for restraints

Notice to Terminate:

Advance notice period for early termination

Cure Period:

Time allowed to remedy breaches before remedies apply

Typical lifecycle milestones after signing

Track milestones from initial execution to post-termination obligations to ensure compliance with timelines and remedies.

01

Execution

Agreement signed and dated by all parties

02

Performance

Contractor delivers work according to schedule

03

Post-Term Monitoring

Company monitors compliance with non-compete and confidentiality

04

Enforcement

Company pursues remedies if breaches are discovered

Common drafting and execution pitfalls to avoid

  • Overbroad non-compete language that lacks geographic or temporal limits and may be unenforceable in many jurisdictions.
  • Vague confidentiality definitions that fail to identify trade secrets or exclude public domain information, weakening protection.
  • Misclassifying a worker as an independent contractor when facts indicate employee status, creating tax and liability exposure.
  • Failing to require written assignment of IP and deliverables, which can leave ownership unclear and complicate future use.

Legal and business risks from an incorrect agreement

Unenforceable Restraints: State courts may void overbroad non-competes
Tax Liability: Misclassification can trigger payroll taxes
Data Breach Exposure: Weak confidentiality may mean regulatory liability
Contract Disputes: Ambiguous terms increase litigation risk
Lost IP Rights: Failure to assign work product risks ownership disputes
Damaged Relationships: Aggressive clauses may deter contractors

Comparison of common eSignature vendors for executing this contract

Many vendors offer eSignature and workflow features; pricing models differ. The table shows starting prices and common feature availability — signNow is listed first as a reference point.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Real-world examples of using this combined agreement

These short case summaries show practical uses and outcomes from organizations that standardized signing workflows for contractor agreements.

Optica Ventures LLC

Optica standardized contractor agreements for project work to reduce turnaround time and confusion.

  • They used a single combined template for scope, IP, and confidentiality.
  • The interface simplicity helped internal teams and customers complete agreements faster and more consistently, improving operational throughput.

Tech Data

Tech Data integrated standardized contractor contracts into revenue workflows to speed execution.

  • The company centralized templates and eSign processes.
  • Centralization improved internal and external customer service and accelerated speed to revenue by reducing back-and-forth revision cycles and delays.

Practical drafting and execution tips

Apply these best practices to improve enforceability and reduce downstream disputes.

Keep non-competes narrow
Limit duration and geography to what is necessary to protect legitimate business interests and increase enforceability.
Define confidential information
List categories and exclude public information to reduce ambiguity and strengthen protection of trade secrets.
Use clear IP assignment
Explicitly assign or license work product and require delivery of source materials where relevant.
Record execution evidence
Capture signer identity, timestamps, and an audit trail to support later enforcement or tax compliance.

Frequently asked questions and troubleshooting

Answers address common concerns about enforceability, execution method, state differences, and digital signing best practices for this combined agreement.


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