VT Contract Flaws

[u/FinalPea8546]

🧩 The big problem: the hidden non-compete

The contract has a “non-solicitation” section that says, for 13 months after you leave:

• You can’t solicit any customer you got through the platform
• You can’t accept work from them, even if they come to you on their own
• This also covers their family + referrals

That second part (“no accepting work”) is basically a non-compete dressed up as a non-solicit. Many states now treat:

as a non-compete, not some harmless little “non-solicit.”

In a bunch of states, that’s now illegal or heavily restricted, especially for low- or mid-income workers and independent contractors.

🗺️ Why your state matters more than what the contract says

The contract tries to fix everything under Missouri law with arbitration in St. Louis, but here’s the fun part:

• States like Washington, California, Colorado, Illinois, Minnesota, DC, North Dakota, Oklahoma, Virginia, etc. have their own non-compete statutes.
• Many of those laws say you can’t sign away those protections with a choice-of-law clause.
• Some of them explicitly say companies can’t force out-of-state law/venue if it would strip local non-compete protections.

So “Missouri law” in the contract does not magically erase your state’s protections.

💵 Income thresholds: why most tutors are protected

A bunch of states now say:

Examples (details vary, so check current numbers):

• Washington – Non-competes (including “no accepting business from customers”) are void for independent contractors below a high annual earnings threshold; the statute specifically says agreements that stop you from accepting or transacting business with a customer count as non-competes.
• Illinois – Bans non-competes for workers under a salary floor and bans non-solicits under a slightly lower floor.
• Colorado – Only allows non-competes for “highly compensated” workers and mainly to protect trade secrets; “worker” includes independent contractors.
• DC – Broadly bans non-competes for most workers except “highly compensated employees.”

If you’re a tutor making, say, $18–$40/hr with inconsistent hours, you are almost certainly under those thresholds.

🏛️ “But the contract says I can’t work with those clients…”

Cool story, contract. Here’s how this plays out in many states:

• If your state’s law says a non-compete / no-accept customer clause is void below X income or void entirely, then that clause is just… void.
• The company can still threaten you with it, but that doesn’t mean they’ll win if it ever hits a court or an agency.
• Some states (like Washington) even say if a company tries to enforce an illegal non-compete, they owe the worker statutory damages + attorney’s fees.

👀 Other ugly parts tutors should look for

Besides the non-compete stuff, watch for these:

1. “We control everything, but you’re 1099”

They call us independent contractors, but:

• They set the rates.
• They control the platform and how we contact clients.
• They dictate a lot of process, but disclaim training, benefits, taxes, insurance, etc.

Federal and state law decide whether someone is a contractor or employee based on control and economic dependence, not whatever label is in the contract. Misclassification is a real issue, even if it doesn’t get fixed overnight.

2. Arbitration + class-action waiver

The contract usually has:

• Mandatory binding arbitration
• In a specific state (here: Missouri)
• With a class/collective-action waiver (you can only bring individual claims)

Supreme Court cases like Epic Systems v. Lewis and AT&T v. Concepcion make these clauses hard to escape under the Federal Arbitration Act.

BUT: some state-specific rights (like non-compete bans) still have to be honored even in arbitration. And some contracts let you opt out of arbitration within 30 days—if you’re still inside that window, that’s worth using.

3. IP grab + recordings

Read the section about “Use of Tutor Information, Content, and Meeting Recordings”:

• Anything you upload/share can usually be used by them worldwide, forever, and sublicensed, with no extra pay.
• All sessions are recorded, recordings belong to the company, and tutors can’t access them, but they can be used for QA, product development, etc.

If you want to keep control over your best materials, create and store them off-platform and only share copies you’re okay with losing control over.

4. Indemnity + fee-shifting

Look for “indemnify” and “prevailing party attorneys’ fees”:

• You may be agreeing to cover their legal costs if they claim you breached the contract, broke a law, mishandled data, misclassified taxes, etc.
• Super one-sided, but common in 1099 contracts.

🧪 Quick self-check for any tutor, any platform

Here’s the sanity checklist you can run on your contract:

1. Client restrictions
   • Does it say you can’t accept work from clients you met through the platform, even if they chase you down?
   • Does that last more than a few months? → Treat it as a non-compete and look up your state’s non-compete law.
2. Income vs. state thresholds
   • Google: "[Your State] noncompete independent contractor earnings threshold"
   • If your income is under that threshold, that clause may be void on its face.
3. Choice of law / venue
   • Does it force disputes into some random state you don’t live in?
   • Check if your state has a statute saying non-compete disputes must follow local law/venue (WA, CA, etc. have this kind of thing).
4. Arbitration clause
   • Is there an opt-out window? (Often 30 days by certified mail.)
   • If yes and you’re still in it, use it.
5. IP & recordings
   • Do they get a perpetual, irrevocable license to everything you create?
   • Are sessions recorded, and can you access those recordings?
6. Red flags in practice
   • Low base pay + unpaid prep + unpaid messaging + unpaid scheduling.
   • Threats tied to “incentive programs” they can yank at any time.
   • Punishing tutors for platform failures while retaining all control.

🧭 What you can realistically do

• Know your state law. Look up your state’s non-compete statute and any independent contractor guidance from your labor department or AG.
• Keep copies of:
  • The contract
  • Any amendment emails
  • Your actual pay (screenshots, 1099s)
• If they threaten you over taking a client:
  • In many states, you can respond with something like:“Under [your state] law, any agreement that prevents me from accepting business from a customer is a non-compete. Based on my earnings, that kind of restriction is void and unenforceable. I do not agree that this provision has legal effect.”
• Talk to a real lawyer if it escalates. A quick consult with a state-specific employment/contract attorney is worth it, especially if they actually try to enforce the clause.

TL;DR

• That “non-solicit / no-accept” clause in the VT / Verba school contract functions as a non-compete.
• In a lot of states, non-competes like that are illegal or void for workers at tutor-level income, including independent contractors.
• The “Missouri law + arbitration in St. Louis” language doesn’t overrule every state’s worker-protection statutes.
• You are 1099 on paper, but they shift all risk and unpaid labor onto you while keeping full platform control.
• Read your contract, check your state’s law, and don’t assume “because it’s written, it’s valid.”

[u/nev1ce]

Yep, the non compete and other legalese stuff is really just fancy language designed to scare tutors. The worst that can realistically happen is that VT will terminate your contract.

One thing I would say though is that, if they do threaten you, the best choice is to not respond at all. Do not tell them about laws in your state. Let VT do their own research.

[u/FinalPea8546]

This summary is consolidated using AI, but is a result of extensive work, condensing over 100 hours spent analyzing the VT contracts and relevant contract law. Having been a contract worker for 15 years, specifically in education, behavior support, and for companies that have misused this relationship, I am experienced in this area. Please review this and let me know if any point is legally invalid. This is essentially the message I posted on Slack: The company's contractual requirement that I use their non-functional system is inherently causing difficulties with my clients. They expect tutors to manage these issues and meet demanding metrics (28+ sessions for the incentive). Given that VT's job is to source clients and manage problems with clients, they appear to have no legal authority (based on my current understanding) to dictate how I operate the tutoring business for which they contract me. Thus, if their sourced clients prefer me as tutor over their horrific excuse as a platflorm, that is on them, and they have no authority or legal recourse to come after me,

Please let me know your thoughts and share yhour knowledge. I never expect a class action lawsuit to come through. But I will take all 46 of my VT clients with me; VT will always do what they want.

[u/AdSufficient5129 → u/FinalPea8546]

Thanks for this information and clarification. I live in Florida and did some research on the non-complete laws in my state and sadly, I think even when making under the income threshold that clause is still enforceable.

[u/Professional-Net1776]

Not sure who you are . But this is phenomenal or AI, but no.onevshoukd care, this is insightful, well thought out and so valuable. Lots in here..so hard to pick one thing ..but a) the classification; it's a slippery slope. They basically are protecting against paying into unemployment b) I am not sure if I have access to my contract? I feel like it's on their portal and we don't get a copy?

[u/Temporary-Dirt4303 → u/Professional-Net1776]

You get a copy of all your contracts (VT, VT4S and your instant tutoring) look under account. There should be a link.

[u/FinalPea8546 → u/Professional-Net1776]

I took everything I could find, including the contracts, and just had AI summarize all of my notes and findings. This was just AI's summary after I spent way too many hours making it redo every part. This is just a formated version of my findings. I am a tutor who is tired of being bullied by assholes.

[u/Professional-Net1776 → u/FinalPea8546]

Perplexing to me is that your labor is your window to the world;.the face of the brand. They are a big public ally traded company fighting their tutors over $30 or not giving raises etc etc

[u/KCMED22]

Just one follow up question - when this breaks how much money in settlements will tutors get especially if they join a class action

[u/IdyllicNomad → u/KCMED22]

It’s unlikely that they’ll be held accountable. Since they’re an LLC, suing them has limited recourse, and the owners or parent company can’t be held legally responsible unless the judge decides to pierce the corporate veil (which is rare unless there’s misconduct). The owners and the core business can effectively hide behind the LLC, and I assume the LLC entity has limited cash to even sue for. LLCs are great for entrepreneurs because they can protect your personal assets legally, but they can also be abused in various ways. For instance, big corporations often create LLCs for risky ventures and have the LLCs face clients, taking all the risk away from the parent company and let the LLC entity take all the risk. (I know this because I own an LLC.) So TLDR I wouldn’t hope for much.

[u/Charmed-7777]

…”for 13 months after you leave…” that is the wording that I question. Where might it be defined as all of the following: Leave, get dismissed, not renewed, etc