Apprentice-contract

[Stormy day]

My wife has been in pet care for about 5 years now, she bathes dogs, trims nails, things of this nature, and really enjoys it. She has worked for a couple different outfits now, the first one being a mom and pops shop that she enjoyed, then a corporate out fit where management was ignorant. Now she is concentrating on earning her GED so she can start grooming school. A woman at a local shop offered her a job the other day, told her she would teach her to groom but will not pay her for her time learning cause she would have to pay for grooming school anyhow, that I can somewhat understand. Then she told her that she would not train her competition so she would have to sign a contract that states she will not groom dogs within 25 miles of her shop if she trains her, ever! What my wife thought was an opportunity has probably already gone sour. Here is my question, if this lady teaches my wife to groom can she really make sure she can't ever groom around here again if they have a falling out? Then she tells her she will be paying her as a sub contractor so she has to worry about her own books and accounting. The lady sounds like she is a little nuts to me. By the way, we are in central Illinois.

[MyITGuy]

Then she told her that she would not train her competition so she would have to sign a contract that states she will not groom dogs within 25 miles of her shop if she trains her, ever!

A non-compete has to have reasonable terms such as what was specified (25 mile radius) along with a time frame (1 Year is usually the norm).

[Freelancier]

Then she tells her she will be paying her as a sub contractor so she has to worry about her own books and accounting. The lady sounds like she is a little nuts to me.

If she's not controlling her work hours and your wife provides her own tools, she can likely engage her as a subcontractor. But I don't understand: if she's not paying her, why worry about being a subcontractor? Or would this be after her training was complete?

The woman doesn't sound nuts at all, based on your description. She sounds like she's taking reasonable steps to protect her business while at the same time providing your wife with an opportunity.

And, yes, to agree with Jeff: a non-compete needs to have reasonable scope/duration/location. If you don't have all three, then a court won't uphold it (although some courts are empowered to "fix" the contract, most won't assume anything and just strike the entire clause).

[Stormy day]

I guess I should have been more clear, after she trains she would be paid by the dog.

[Freelancier]

she would be paid by the dog.

As long as there's a difference in rate between different dog sizes, different types of services, etc., that's not a bad thing, because it'll teach her to become more efficient.

Still don't see why you think this woman is "nuts".

[Stormy day]

I guess part of the 'nuts' thing comes from her never being able to groom again within 25 miles, ever. But that doesn't seam reasonable I guess. I could understand a year or two. The other part of the 'nuts' comes from the lady's disposition. T

[huggytree]

everyone being a subcontractor is the way of the future...I see it all the time....no one has employees anymore, they all hire out subs= no benefits or unemployment

also the non compete isn't that big of a deal either...I would do the same

[Business Attorney]

everyone being a subcontractor is the way of the future...I see it all the time....no one has employees anymore, they all hire out subs= no benefits or unemployment

also the non compete isn't that big of a deal either...I would do the same

You can't just call an employee a subcontractor and assume that will stick. The legal status of someone working for you depends on a number of factors which mostly come down to the degree of control you exercise over the person's work. See my article Independent Contractor or Employee? (http://www.illinoisbusinessattorney.com/articles/independent_contractor_vs_employee.html).

The consequences of mischaracterizing an employee as an independent can be enormously expensive.

Most businesses need employees. Sure, there are always some things that a business can subcontract out, but "everyone being a subcontractor" not going to happen.

[huggytree]

You can't just call an employee a subcontractor and assume that will stick. The legal status of someone working for you depends on a number of factors which mostly come down to the degree of control you exercise over the person's work. See my article Independent Contractor or Employee? (http://www.illinoisbusinessattorney.com/articles/independent_contractor_vs_employee.html).

The consequences of mischaracterizing an employee as an independent can be enormously expensive.

Most businesses need employees. Sure, there are always some things that a business can subcontract out, but "everyone being a subcontractor" not going to happen.

one of my main remodeler customers has 0 employees...they have 3 subcontractors that pretty much work for them full time....they tried hiring them as full time employees and all 3 backed out due to taxes...they said they made more as subs than as employees....health insurance wasn't an issue for any of them

they always talk about the future of employment due to obamacare.......many employees may be part time or subcontractors to avoid it

[Freelancier]

they always talk about the future of employment due to obamacare.......many employees may be part time or subcontractors to avoid it

"They" are wrong. Did Obamacare Cause an Increase in Part-Time Employment? | The Big Picture (http://www.ritholtz.com/blog/2013/10/obamacare-part-time-employment/)