Theoretically, Federal government restricts its contractor from burdening subcontractors, many of them are independent contractors, with non-compete. Under the FAR's continuity of service policy contractors should avoid the non-compete (restrictive covenants) as it can cause interference with the continuity of business . However, in real-life this practice of non-compete continues to be carried on by some contractors (employers). The Federal Government need to be more explicit and lay out clear policies on this issues. Penalties for contractors in violations need to be established.
http://www.bizjournals.com/washington/print-edition/2011/11/25/noncompet...



