Does an employment confidentiality agreement stop me from working with former clients as a freelancer?
Does a confidentiality agreement stop you from freelancing for former clients? Learn the legal reality and how to analyze your contract with TermScore.
A standard confidentiality agreement (NDA) does not automatically prevent you from working with former clients, as its primary purpose is to protect proprietary information. However, you must check your contract for a non-solicitation clause, which explicitly restricts you from poaching or servicing your former employer's clients for a set period.
Understanding the Legal Distinction
Many employees conflate NDAs with non-compete or non-solicitation agreements. Understanding the specific language in your contract is the only way to determine your freedom to freelance.
Confidentiality Agreements (NDAs)
An NDA is designed to prevent the unauthorized disclosure of trade secrets, client lists, and internal processes. It does not forbid you from using your general skills or professional relationships, provided you do not use the employer's confidential data to gain an unfair advantage.
Non-Solicitation Clauses
This is the clause that actually impacts your ability to work with former clients. It typically prohibits you from:
- Actively reaching out to clients you managed while employed.
- Inducing clients to terminate their relationship with your former employer.
- Accepting business from clients if the contract explicitly forbids "servicing" them.
Key takeaway: If your contract lacks a non-solicitation clause, you are generally free to work with former clients, provided you do not violate your NDA by using proprietary data or trade secrets.
Criteria for Enforceability
Even if a contract contains a restrictive clause, it may not be enforceable in court. Judges evaluate these agreements based on "reasonableness."
| Factor | Reasonable Standard | Unreasonable Standard |
|---|---|---|
| Duration | 6 to 12 months | 3+ years |
| Scope | Clients you personally serviced | All clients of the company |
| Geography | Limited to your service area | Global or nationwide |
Jurisdictional Variations
Jurisdiction is critical. For example, California (Business and Professions Code Section 16600) has some of the strictest laws in the U.S., generally rendering non-compete and many non-solicitation agreements void. Conversely, states like Delaware or Texas often enforce these clauses if they are narrowly tailored to protect legitimate business interests.
How to Assess Your Risk
Before accepting a freelance project from a former client, follow this checklist to mitigate legal exposure:
- Review the "Restrictive Covenants" section: Look specifically for "Non-Solicitation of Customers" or "Non-Interference."
- Identify the "Look-back" period: Determine if the restriction applies to all clients or only those you had contact with in the last 12 months.
- Check for "Carve-outs": Some contracts allow you to work with former clients if they reach out to you independently (passive solicitation).
- Assess the "Confidentiality" scope: Ensure you are not using internal pricing models or private client data to secure the new freelance contract.
Practical Steps to Protect Your Freelance Career
If you are concerned about a potential breach, take these proactive steps:
- Document the source of the lead: If a former client contacts you first, keep a record of that communication.
- Avoid using employer resources: Do not use your former company's templates, software, or proprietary data for your freelance work.
- Consult local counsel: If the contract is ambiguous, a 30-minute consultation with an employment lawyer can save you thousands in potential litigation costs.
Key takeaway: Always prioritize transparency. If you are unsure, a polite conversation with your former employer or a review of your contract's specific "non-solicitation" language is safer than assuming you are in the clear.
Navigating restrictive covenants is complex, but you don't have to do it alone. TermScore uses advanced AI to instantly scan your employment agreements, highlighting non-solicitation clauses, confidentiality obligations, and potential risks, giving you the clarity you need to freelance with confidence.
TermScore Research
Our legal AI analyzes thousands of contracts to surface market standards, common pitfalls, and actionable insights for anyone who signs agreements.