Non-compete agreements are contracts that restrict employees from working for competitors or starting a competing business. These limitations typically span a specified time and extend across a certain geographic area.
In Florida, the enforceability of these agreements can differ on a case-by-case basis. Even so, both employers and employees should understand the general rules that govern them.
Enforceability of non-compete agreements in Florida
Florida trade restriction law allows the holders of non-compete agreements to enforce them as long as they meet specific requirements. These agreements must be reasonable in terms of time, geographic scope and the legitimate business interests they protect. Examples of legitimate business interests include the protection of trade secrets, confidential information or client relationships.
Generally, non-compete agreements that last six months to two years are more likely to be enforceable. The agreement must also only cover an area where the employer actually conducts business. If the contract attempts to extend beyond these limits, courts may interpret it as too restrictive unless the employer can prove a significant business reason.
Best practices for entering non-compete agreements
Employers should carefully draft non-compete agreements to ensure they comply with Florida law. The agreement must clearly outline the specific business interests it seeks to protect. Being vague could lead to a court refusing to enforce the contract.
Employees should fully understand the terms before signing. They need to know how long they will be under restriction from working for competitors and in what areas. Employees should also recognize how the agreement could impact future job opportunities.
Both parties benefit when non-compete agreements are fair and clearly defined. By understanding the legal framework in Florida, employers can protect their businesses while employees can avoid overly restrictive conditions that limit their career options.