Florida Statute on Non Compete Agreements

The Florida Statute on Non-Compete Agreements: What You Need to Know

If you`re an employer or employee in Florida, it`s important to understand the state`s laws surrounding non-compete agreements. These agreements, also known as “covenants not to compete,” restrict an employee`s ability to work for a competitor or start their own competing business for a certain period of time after leaving their current employer.

In Florida, non-compete agreements must meet certain criteria in order to be enforceable. First and foremost, the agreement must be supported by a legitimate business interest. This means that the employer must have a specific reason for imposing the non-compete, such as protecting trade secrets or preventing a former employee from using confidential information to compete against them.

Additionally, non-compete agreements in Florida must be reasonable in both scope and duration. The scope refers to the geographical area and the specific types of services that are restricted by the agreement. The duration refers to the length of time that the agreement will be in effect after the employee leaves the company.

The Florida Statute on non-compete agreements provides further guidance on what constitutes a reasonable agreement. For example, the statute states that non-compete agreements cannot be broader than necessary to protect the employer`s legitimate business interest. It also specifies that the duration of the agreement cannot exceed two years.

If a non-compete agreement is found to be unreasonable or unenforceable, a court may refuse to enforce it. In some cases, a court may also award damages to the employee or invalidate the entire agreement.

It`s important for both employers and employees to understand their rights and responsibilities when it comes to non-compete agreements in Florida. Employers should make sure their agreements meet the state`s requirements and are necessary to protect their business interests. Employees should carefully review any non-compete agreements they are asked to sign and seek legal advice if they have concerns.

In conclusion, the Florida Statute on non-compete agreements provides important protections for both employers and employees. By understanding these laws, you can ensure that any non-compete agreements you enter into are fair and reasonable.