Best practice for bringing on a sub-contractor

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.


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.

So basically, a “no compete” clause?

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.