Many Florida businesses include non-competition (“non-compete”) clauses in their employment agreements. There are two sides to the debate about whether non-compete agreements and clauses are reasonable and when employers unfairly use and enforce these competition restrictions.
On the employer side, businesses plead the necessity of these Florida non-compete clauses to protect them from employees gaining valuable training, trade secrets, and client lists, then using the same to market themselves to competitors, or compete themselves. On the employee side, businesses are accused of using these non-compete restrictions as leverage against employees by restricting their future employment where there may be more opportunities for upward mobility and higher pay.
Florida non-compete clauses are generally enforceable under certain circumstances. However, the enforceability of a non-compete agreement depends on various factors, such as its reasonableness in terms of time, geographic scope, the industry (enforcement for the medical and legal industries is disfavored for public policy reasons), and the legitimate business interests it seeks to protect. Unfortunately, a court will not consider the financial hardship caused by enforcement as part of its analysis.
Florida Statutes Section 542.335 governs non-compete agreements in Florida. According to this law, a non-compete agreement must be in writing, signed by the person against whom enforcement is sought (the employee), and a legitimate business interest must support it. Legitimate business interests may include protecting trade secrets, confidential business information, substantial customer relationships, or specialized training provided to the employee.
Courts will carefully scrutinize Florida competition restrictions in agreements to ensure the parameters of the restriction are reasonable in their duration and geographic scope. The restriction should be no greater than necessary to protect the legitimate business interests involved. The specific circumstances of each case will be evaluated, including the nature of the business, the employee’s position, and the impact of the non-compete agreement on the employee’s ability to find work.
If you have concerns about an existing or proposed agreement with a non-compete restriction, it’s advisable to consult with a qualified Florida attorney for professional advice tailored to your situation. It’s worth noting that enforcement can vary depending on the specific facts and circumstances of each case as courts’ interpretation of the law may evolve over time, and that this area of law is the subject of many proposed Florida and Federal law updates.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction or the jurisdiction applicable to your issue/matter. No information contained in this post should be construed as legal advice from Roberts Law, PLLC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
