Dear Dakota: What to Do When a Junior Designer Uses My Portfolio to Promote Their Side Hustle
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We’ve been getting a lot of questions for our Dear Dakota series about hiring: the process, finding the best employees, paying them, NOT micromanaging them.
Read here to learn more about bringing on your first hire.
Read here if you’re not sure what expertise to look for in a hire.
If you already have a team in place, but need better processes for managing their workflow and team communication, this blog is for you.
If you need to figure out how to pay your team, read this one.
And, if hiring is a big question mark and challenge for you in general, check out our Hiring Blueprint for interior design businesses.
In this article, we’ll address a very important challenge, and one I hope you NEVER experience.
Dear Dakota, My junior designer is using my portfolio images to promote her side business to take on her own clients. What should I do?
Yikes. I feel for this design business owner. She must feel completely blindsided. Someone she has invested in and trusted with her livelihood has done the absolutely unthinkable.
The key is to prevent this from happening in the first place and to have a plan in place for handling it if it does.
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Let’s first walk through how to protect your interior design business, then we’ll talk about what to do if someone’s already crossed the line.
And if you’re going through something similar, I’m sending a big virtual hug. It’s gut-wrenching when someone uses your hard-earned intellectual property without permission, for their own financial gain, and to compete with your business.
Deep breaths. Deep breaths.
How to Protect Your Interior Design Business from IP Misuse
If you employ junior designers as subcontractors (1099 workers), you need a clear, detailed subcontractor agreement. Every subcontractor should review and sign it before they begin work. Do.Not.Skip.This.Step. ← DO not even invite them into any of your software or any projects until they have signed an agreement (more below).
If your junior designer is a W-2 employee, you’ll want to have a solid Employee Handbook ready on day one. Make sure your employee signs a statement confirming they’ve reviewed and understand your policies and that they agree to follow them. Since most employee relationships are “at will,” you may not use a formal employment contract, but your handbook should outline expectations and policies in writing.
Quick tip: If you ever update your policies, provide a revised handbook and have employees sign a form stating they received and agree to the changes.
Include This Critical Clause in Your Contracts
Most business owners want to retain ownership. That means even if your junior designer sources products, drafts designs, or creates client presentations, the work belongs to your company, assuming this is spelled out in your contract or handbook.
You can also include a clause stating that employees or subcontractors must receive explicit written permission before using any images, design files, or project work for their own portfolio or marketing. This removes any gray area and protects your work from being used to promote competing services.
In the situation shared above, if the designer had clearly outlined ownership of work in her agreements, her junior designer wouldn’t have been able to legally use those images to attract her own clients.
Can Interior Designers Use Non-Compete Agreements?
One might ask, “Can’t I just have an employee or subcontractor sign a non-compete agreement stipulating they won’t directly compete with my business?”
The issue of non-compete agreements (NCAs) is a complex matter. In many cases, especially for junior or lower-wage employees, non-competes are unenforceable or strongly discouraged. While some states still allow them under strict conditions, many have banned or severely limited their use. Courts have also ruled against NCAs, making them a risk for employers and often unenforceable.
In 2021, President Biden issued an executive order, Promoting Competition in the American Economy, which directed the Federal Trade Commission (FTC) to address agreements that unduly limit a worker’s ability to change jobs or find new employment opportunities, perhaps at a higher salary. The order is clearly pro-worker and part of a broader push to protect employees’ rights to earn a living. This marked a major shift in how NCAs are treated nationwide.
So while you may be able to include a non-compete in some cases, you need to work with a licensed employment attorney in your state to assess whether it’s appropriate and enforceable.
What to Include in a Subcontractor Agreement for Interior Design Businesses
Even if a non-compete isn’t viable, there are other contract terms that are enforceable and highly effective. Here are a few of the must-have clauses I always include in my subcontractor agreements (reminder, I’m not an attorney and this is not legal advice, this is what I personally do):
Confidentiality Clause
This protects your internal systems, pricing structure, client details, design processes, workflows, and any proprietary business information from being shared or misused.Non-Solicitation Clause
This prevents subcontractors from working directly with or poaching your clients, vendors, or team members, both during the contract and for a defined period afterward.Ownership of Work / IP Assignment Clause
This clarifies that all work created while working for your company belongs to your company, not the subcontractor or employee.(Optional) Non-Compete Clause
This one gets tricky. In some states, it’s unenforceable altogether. If used, it must be narrowly tailored and reasonable in scope. Always run it by a qualified attorney in your state.
Note: In some cases, including a non-solicit or non-compete clause may give the subcontractor or employee leverage to request a higher rate. Be ready for that.
And yes—I’ve had subcontractors push back on these terms (like one who wanted to retain ownership of the work she created and one who wanted to work directly with my clients on the side). In those cases, they didn’t sign and they didn’t work for my company. Those policies are non-negotiable.
Why Strong Contracts Create Business Clarity
Bottom line?
Be thorough and proactive. Build strong subcontractor agreements. Develop a comprehensive Employee Handbook.
And always, ALWAYS, have these reviewed by an attorney in your state.
Contracts are your friends. They create clarity, protect your business, and provide a roadmap for navigating challenging situations.
What to Do When a Junior Designer Breaks the Rules
If this designer had asked me this question in person, the VERY first thing I would ask would be,
“What does your Employee Handbook or subcontractor agreement say about this?”
And then, assuming they have one, I would say,
“Okay, follow that.”
When these things are spelled out, the next step becomes obvious.
If this designer had covered intellectual property ownership details in their employee handbook or subcontractor agreement, and then ran up against this issue (that the junior designer was using her portfolio images to solicit side work) I suggest she have a conversation with that person to remind them of the company policy which precludes them from using company-owned images for advertising their own services.
I think giving people the benefit of the doubt, first, is always a good idea.
Start by saying,
“I’m aware you’ve been using the company’s portfolio images to take on your own clients. You may not have realized this violates our policy, but it does.”
Then, depending on how the conversation with this junior designer proceeds, you, as the business owner, need to decide how to move forward.
You can choose to make no changes now that you have reiterated the policy to the employee because you feel they will comply, and they simply forgot.
You may decide to implement this policy (if you don’t already have one in place) at which point you would have them sign an agreement or you would update your Employee Handbook and have them sign off on this policy.
Or, you may decide it’s best to terminate that employee.
**Before terminating an employee for violating company policy, consult your attorney to make sure your documentation is sufficient and you're complying with local employment laws. And, be sure your client list, vendor list, and company assets are on lockdown before you terminate them, because they may not operate with integrity after their termination.
When to Involve a Lawyer for IP or Contract Disputes
For business owners who do not have an employee handbook or subcontractor agreement in place, or who have these documents but they do not cover intellectual property ownership, I strongly advise implementing them immediately.
In the event of any issues, whether with an employee, a client, or a vendor, I always err on the side of consulting with an attorney sooner rather than later.
Let the attorney know what happened to determine if you have a solid case, and then take time to assess exactly how the situation has impacted your business: financially, operationally, and even reputationally. If the issue has caused confusion in the marketplace or hurt your brand, that’s important to document as well. In some cases, a clear conversation or termination is enough. In others, your attorney may recommend taking further legal action.
Final Thoughts: Protect Your Interior Design Business
As a business owner who has personally experienced the impact of intellectual property theft, copyright infringement, and more, on several occasions, I can tell you this:
The experience is painful, disruptive, and expensive.
While this post isn’t legal advice, I hope it helps you take the right next step. Protect your work. Protect your intellectual property. Protect yourself. Protect your clients.
The price of putting solid contracts in place BEFORE something goes wrong is worth EVERY penny.
**This post is for informational purposes only and does not constitute legal advice. Always consult with an attorney licensed in your state for advice specific to your business or employment situation.
