Best practice for bringing on a sub-contractor

#1

I was recently approached by a guy who wants to learn the trade and eventually start his own business. He expressed interest in getting his license and working for me as a sub-contractor.

For those of you who have similar experience, what are the most important things (liability issues, etc.) I should consider before contracting and allowing him to train and work through my company?

I’m only considering doing this because 1) I have many other things going on outside my business right now, yet business is booming, so I don’t want to let it slip, and 2) the main territory he will be working in is a bit outside the range of my typical reach, so I think it will be good for me while also setting him up for his own business in an area that will not be directly competitive down the road.

Thanks,
Josh

#2

Some type of contract with this in it.

Jr Inspector agrees not to call upon, solicit, divert or take away any company contacts or clients within ___ miles of ___ (your base) for twelve months.

#3

So basically, a “no compete” clause?

#4

Yes, an attorney should be able to put together an entire agreement to protect you.
I’ve seen them say that there’s a “penalty” for breaching the agreement at a cost of $10-20K.
You acknowledge that the liquidated damages are not a penalty, but that we intend them to reflect the fact that actual damages may be difficult and impractical to ascertain.