My question involves employment and labor law for the state of NC:
I am an independent subcontractor doing corp-to-corp in the State of NC have signed a non-compete agreement with a company 'X' as an independent sub-contractor to work for one of X's client 'Z' in the state of NC. The company 'X' is one of the preferred vendors of the client 'Z'. I signed this agreement before started working for 'X'. Here are some of the covenants per the non-compete agreement (EXACT wording of the SPECIFIC agreement):
SUBCONTRACTOR is engaged on a non-exclusive basis and is free to offer similar services to the general public, whether or not competing with 'X' or its clients, however, SUBCONTRACTOR on its own behalf and for its employees, agents and contractors who provide services related to this SUBCONTRACT, agree not to perform services directly or indirectly for X's CLIENT during the term of this Agreement and for a period of one (1) year following the termination of this Agreement without the written consent of 'X'.
SUBCONTRACTOR, on its own behalf and for its employees, agents and contractors who provide services related to this SUBCONTRACT, agree not to recruit, solicit, or hire for his own account or the account of another any of X’s or CLIENTS employees, consultants, or other personnel for a period of one (1) year following the termination of this Agreement without the written consent of 'X'.
It looks like the client 'Z' is likely going to fire the vendor 'X' as one of their preferred vendors. If that happens, all the X's independent contractors of who work of client 'Z' cannot work anymore once the 'X' is terminated as a preferred vendor. It is so unfortunate for all of the subcontractors to lose their jobs for no fault of theirs but because of X's failure to maintain good relationship with it's client 'Z'. The client MAY offer contracts to some if not all of the independent subcontractors of 'X' if they come across through another preferred vendor who is a direct competitor to 'X'. FYI, Client 'Z' has no direct contact with any of the subcontractors whatsoever.
1) Can 'X' still enforce non-compete clause to their subcontractors?
2) Does Courts in NC withhold this Non-Compete?
3) Can 'X' anyway interfere or attempt to enforce despicable covenant on its subcontractors if they try to establish relationships with one of their direct competitors with the same client(not any more once 'X' is terminated) 'Z'.
4) Does 'X' even have the authority to enforce non compete clause on their subcontractors? The 'X' has been debarred as a vendor of 'Z'. Don't you think the entire covenant fails? The primary purpose of the noncompete is to protect the employer's customer base. When 'Z' is not 'X's customer.
Any feedback that is offered is most definitely appreciated!!

