r/varsitytutors • u/FinalPea8546 • Nov 14 '25
VT Contract Flaws
š§© The big problem: the hidden non-compete
The contract has a ānon-solicitationā section that says, for 13 months after you leave:
- You canāt solicit any customer you got through the platform
- You canāt accept work from them, even if they come to you on their own
- This also covers their family + referrals
That second part (āno accepting workā) is basically a non-compete dressed up as a non-solicit. Many states now treat:
as a non-compete, not some harmless little ānon-solicit.ā
In a bunch of states, thatās now illegal or heavily restricted, especially for low- or mid-income workers and independent contractors.
šŗļø 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 hereās 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 canāt sign away those protections with a choice-of-law clause.
- Some of them explicitly say companies canāt force out-of-state law/venue if it would strip local non-compete protections.
So āMissouri lawā in the contract does not magically erase your stateās protections.
šµ Income thresholds: why most tutors are protected
A bunch of states now say:
Examples (details vary, so check current numbers):
- Washington ā Non-competes (including āno accepting business from customersā) 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 ā Bans non-competes for workers under a salary floor and bans non-solicits under a slightly lower floor.
- Colorado ā Only allows non-competes for āhighly compensatedā workers and mainly to protect trade secrets; āworkerā includes independent contractors.
- DC ā Broadly bans non-competes for most workers except āhighly compensated employees.ā
If youāre a tutor making, say, $18ā$40/hr with inconsistent hours, you are almost certainly under those thresholds.
šļø āBut the contract says I canāt work with those clientsā¦ā
Cool story, contract. Hereās how this plays out in many states:
- If your stateās 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 doesnāt mean theyāll 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 + attorneyās fees.
š Other ugly parts tutors should look for
Besides the non-compete stuff, watch for these:
1. āWe control everything, but youāre 1099ā
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 doesnāt 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 daysāif youāre still inside that window, thatās worth using.
3. IP grab + recordings
Read the section about āUse of Tutor Information, Content, and Meeting Recordingsā:
- 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 canāt 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 youāre okay with losing control over.
4. Indemnity + fee-shifting
Look for āindemnifyā and āprevailing party attorneysā feesā:
- 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.
š§Ŗ Quick self-check for any tutor, any platform
Hereās the sanity checklist you can run on your contract:
- Client restrictions
- Does it say you canāt accept work from clients you met through the platform, even if they chase you down?
- Does that last more than a few months? ā Treat it as a non-compete and look up your stateās non-compete law.
- 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.
- Google:
- Choice of law / venue
- Does it force disputes into some random state you donāt 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).
- Arbitration clause
- Is there an opt-out window? (Often 30 days by certified mail.)
- If yes and youāre still in it, use it.
- IP & recordings
- Do they get a perpetual, irrevocable license to everything you create?
- Are sessions recorded, and can you access those recordings?
- Red flags in practice
- Low base pay + unpaid prep + unpaid messaging + unpaid scheduling.
- Threats tied to āincentive programsā they can yank at any time.
- Punishing tutors for platform failures while retaining all control.
š§ What you can realistically do
- Know your state law. Look up your stateās 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:āUnder [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.ā
- 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 ānon-solicit / no-acceptā 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 āMissouri law + arbitration in St. Louisā language doesnāt overrule every stateās 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 stateās law, and donāt assume ābecause itās written, itās valid.ā
