The agreements are not restricted to regular employees. In Austin v. Mid State Fire Equip., 727 So. Companies sign this document with their employees to protect the information, technologies, and knowledge they have. However, you should know that many companies use a one-size-fits-all with their non-compete agreements, which can deem them ineffective and unenforceable in the eyes of the law. The law addressing non-compete agreements is complex. Non-Compete Agreements are disfavored by the Courts, as against public policy, but are enforced by Courts when they comply with Florida Statute 542.335. whether youre looking to create one or enforce an existing agreement. Valued and confidential business information not otherwise qualifying as a trade secret (e.g., customer lists). Florida Statutes Section 542.335(1)(f)(2) requires assignment of a non-compete provision to be expressly authorized by the contract in order to be enforced by an employer's assignees or successors. Recognized Hardships Business no longer operates in the jurisdiction that non-compete covers; All pertinent legal and equitable defenses; and The effect of enforcement upon public health, safety, and welfare. You should carefully read the terms of the noncompete and seek an attorney's opinion on its enforceability. 10400 Griffin Rd #204 Cooper City, FL 33328 (954)680-6300 ballmand@ballmanfirm.com Your employer will tell you that you are bound by your non-compete agreement when you leave. If the language was very vague or broad, a non-compete lawyer should review it to determine your legal obligations. Non-solicitation agreements that prohibit marketing and selling to your customers. Are non-compete agreements enforceable in Florida? The presumption for a noncompete related to the sale of a business, its ownership interest, or its assets, a term length of 3 years is reasonable while a term longer than 7 years is unreasonable. These agreements, typically called "non-compete agreements" or "non-competition agreements" are strictly construed. Florida statutes and courts will enforce the clause of a noncompete agreement in many cases. Substantial relationships with specific customers, patients, clients, etc. Furthermore, Floridas statute explicitly states that a court cannot consider economic or other hardships a noncompete places on a person. An ongoing business or professional practice, by way of trade name, trademark, service mark, or "trade dress"; b. A noncompete without support from a legitimate business interest is unlawful and void under Florida law. Sharing your business's confidential information. A verbal agreement that places a noncompetition obligation on a party will not be enforceable in Florida. How long can a non-compete last in Florida? For this reason, non-competes are viewed with scrutiny where they may prevent someone from working in their chosen occupation. If the agreement has no consideration, then it is seen as unenforceable. If you are currently being offered a new job and have been asked to sign an employment contract with a non-compete clause, it is advisable to consult with an experienced employment law attorney prior to signing. The firm founded by international business attorney Santiago Cueto regularly provides legal advice to people and businesses on the terms of noncompete agreements that protect their business' confidential information. A noncompete agreement is a type of contract that places restrictive covenants on a partys behavior that competes with the other party. In general, a non-compete agreement is a legal contract between two parties. As discussed in the sections above, a valid noncompete can last from a few months to several years, depending on the circumstances. - As Provided by Law Florida Statutes 542.18 provides that "every contract, combination, or conspiracy in restraint of trade or commerce in this state is unlawful." In order to meet Florida requirements, every non-compete/non-solicitation agreement must be in writing and signed by the person against whom enforcement is sought. That is why it is essential to consult with an experiencednon-compete lawyer. It is important to note that if the independent contractor is located in another state, the . Though they may not be something you can touch or quantify, some of these interests are extremely valuable to ongoing business success. Without advertising income, we can't keep making this site awesome for you. As for the geographic scope, "reasonable" means the areas in which the employer does most of its business. They can help answer questions and fight for your rights as an employee/former employee. So are noncompete agreements enforceable in Florida? Soliciting your current employees or vendors. 2d 890, 897 (Fla. 4th DCA2007). The agreements are generally worth the paper they are [] Whether its financial or emotional, workplace violations can have a larger impact than most are aware. A term longer than 3 years is unreasonable. 2d 723 (Fla. 5th DCA2006) (holding that the trial court should reduce the ten year period contained in a sale of business agreement). There are both statutes and cases that inform lawyers about what types of noncompetes are enforceable and which are not. These include but are not limited to: The language of the non-compete agreement in Florida can range from extremely broad to very specific, which is particularly important when it comes to your legal rights. Non-compete/Non-Solicitation agreements are enforceable to the extent that they are necessary to protect a partys legitimate business interests. Below are some of W's recent posts. This article will discuss some of the issues to be confronted in defending employees in noncompete or trade secret litigation, and some strategies that might increase the chances of that defense being successful. However, it is well known that the non-compete cannot be used as a tool simply to eliminate competition. Essentially, one party agrees not to engage in competing business activities against the other party. Florida non-compete law states that for most non-compete agreements six months or less is presumed to be reasonable and two years or more is presumed to be unreasonable. Still, the laws and case precedent regarding non-competes are complicated, so its wise to work with a Clearwater employment contracts attorney whether youre looking to create one or enforce an existing agreement. The first is any liquidated damages expressly stated in the written agreement. Sometimes they are enforceable, although there are many instances where the agreement is legally barred from being enforced under Florida law. Typically, by signing the non-compete agreement, the employee agrees not to enter into businesses or markets that are in direct or indirect competition . Further, Florida courts cannot use rules of contract construction that would require the court to interpret a non-compete agreement in Florida against the drafter of the contract or against the restraint on competition. The short answer is no. Our attorneys have successfully represented employers pursuing claims against former employees for violating non-compete and non-solicitation agreements. Therefore, its understandable that you may consider a non-compete agreement to prevent someone from using them to your detriment. It should be noted that if the geographic area is too broad, for example, a court may rewrite the overboard provision to save the agreement but on more narrowly defined terms. call us for more info 954-712-3070. Non-compete agreements must be limited to a reasonable amount of time. c. A specific marketing or trade area. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Disclaimer | Resources | Privacy Policy, 2022 by Wenzel Fenton Cabassa, P.A. Your rights as a business owner may include filing a lawsuit, but a strongly worded cease and desist letter can be an effective strategy for avoiding the courtroom. This means that, in the case of a former employee, that a restriction of less than 6 months is presumed reasonable and a restriction of more than 2 years is presumed unreasonable. Additionally, the party subject to the noncompete terms must sign the written agreement. Get a copy of the agreement you signed. Limited options exist for working around a valid noncompete agreement under Florida state law. Regardless of whether you are the employee or employer, get insight from TK Law today. (3)Line of Business as Affecting the Non-Compete Agreement. In Florida, a non-compete agreement is also known as a "restrictive covenant. (2)Geographic Scope of the Non-Compete Agreement Must be Reasonable. Any special training or valuable information employees gain through their employment. Examples include: As such, its important to construct a non-competition agreement through the proper terminology, but you must also be clear in terms of the confidential information you seek to protect. today. However, the agreement signed may not be legally enforceable for other reasons. Depending on your position within the company, a non-compete agreement could be a true overreach and considered unnecessary and therefore unlawful. Send us an email and we'll get back to you, asap. If you or someone that you know have questions or need assistance regarding these types of agreements, our attorneys have the experience to answer those questions or provide the necessary assistance. If it amounts to an ordinate amount of time that would be particularly punishing on the individual, you may have a case too. In Florida, a non-compete agreement can be enforced provided it is reasonable when it comes to geographical area and time, and it must protect the employer's legitimate business interests. Were youterminated without a valid reason or part of a mass layoff at your company? Our attorneys are accomplished in all issues surrounding Florida non-compete law and related concerns of employment law that bear upon decisions in these cases. Whether a non-compete agreement is reasonable is a question for the trial court. In Florida, non-compete agreements are governed by Chapter 542, Florida Statutes, and are generally enforceable as long as the geographical and time restrictions are reasonable in scope. This statute lays out the boundaries of an acceptable non-compete agreement. Instead, under Florida law, courts are required to "blue pencil" an impermissibly broad or lengthy non-compete agreement to make it reasonable within the limits of Fla. Stat. the legislation added a new provision to florida's non-compete law, section 542.336 of the florida statutes, which states that a "restrictive covenant" between an employer and a physician is void when "one entity employs or contracts with, either directly or through related or affiliated entities, all physicians who practice such specialty" in Depending on the agreement, the language could be very specific or couched in very broad terms. A court may also consider as a defense the fact that the person seeking enforcement no longer continues in business in the area or line of business that is the subject of the action to enforce the non-compete agreement. See Henao v. Professional Shoe Repair, Inc., 929 So. The excitement of getting offered a new job can sometimes be an obstacle to critical analysis. But note many employers will draft employment agreements that are quite broad, intentionally making it confusing (and even intimidating). If you need help with Florida noncompete law, a noncompete agreement or similar agreement (e.g., a Florida non disclosure agreement), please do not hesitate to contact our office. Florida Statute 542.335 (1) (d) provides that a court will presume 6 months or less as reasonable, and more than two years as unreasonable. | Web design by Silva Heeren. Give us a call for a consultation. Non-compete agreements must be reasonable in terms of duration and geographic scope. 542.335, under Title XXXIII for the Regulation of Trade, Commerce, Investments, and Solicitations. 542.335, is under Title XXXIII for the Regulation of Trade, Commerce, Investments, and Solicitations. Under section 542.335 (1) (d) (3), noncompete agreements enforced against a seller of a business are presumed reasonable if the duration is three years or less. Contact Downer Law to schedule an appointment at our office. We're currently offline. The Florida law that addresses non-compete agreements is found in Fla. Stat. You may also be awarded monetary damages forunpaid wages and/or commissions if you prevail. Non-compete agreements and non-disclosure . The goodwill in a specific marketing or trade area such as distributors and manufacturers (as an aside, if interested check out our. The same tenant applies if the employment agreement was for an extended period, such as more than two years. The reason is that the standards for legal noncompete agreements are somewhat vague (as explained in more detail below). A noncompete agreement will be enforceable in most cases regardless of if you were fired or voluntarily left a company. Any situation where one party receives your sensitive business information might necessitate the use of a noncompete. People and businesses regularly obtain sensitive information through various deals and commercial relationships. Another possibility is if you can prove that the contract is not in the public interest. Fla. 2005). Most challenges to a non-compete agreement are based on a claim that the language is overbroad or that it unfairly hinders an employees ability to find work in his/her field. Non-compete/non-solicitation agreements enforce against a former employee, agent, or independent contractor are presumed reasonable if six months or less in duration, and unreasonable if more than two years in duration. You dont have to deal with it alone. Non compete agreements must serve to protect an employer's "legitimate business interest . Non-compete agreements are usually presumed invalid after two years, though there are occasions where a longer period of time may be appropriate. One scenario is if you can prove you never signed the contract. A legitimate business interest may include but is not limited to: The above may include client lists, client data, product information, sales tactics, and restrictions of competition in geographical areas including a city, county, or even a larger geographic region. The scope and length of the agreement should be reasonable. sample agreement between manufacturer and distributor, Working as an employee for a competitor (sometimes explicitly listed in the agreement), Soliciting clients or other resources (i.e., employees of the company). Obtaining a temporary or preliminary injunction, Awarded monetary damages, including unpaid wages and commissions, Filing a claim against a third party (such as a new employer), Client relationships, lists, and associated data/contact information, Valuable ideas and trademarked business practices in direct competition with the company, Clients, patients, and customers within a specific geographic location. Where a non-compete/non-solicitation agreement falls between the time parameters prescribed by statute and is not presumed reasonable or unreasonable, Florida courts generally rule that the time limitation is reasonable. WE CAN HELP 727-500-1010. Do not work off of an old contract to create a new noncompete, since the laws (and the cases that construe them) change often. The Orlando intellectual property attorneys at TK Law can assist . A non-compete agreement serves several functions, restricting current and former employees from: Working in a competitive business. Statutory Framework. Without some reasonable limitations, the clause may be too broad which creates challenges when you seek to enforce it. In some cases, a settlement or buyout might be possible. 2d 1097, 1098 (Fla. 5th DCA1999) the court ruled that a non-solicitation provision was reasonable to the extent it restricted former employee from soliciting any of the former employers customers and disclosing confidential business information. One may be more appropriate than others depending on the language of your non-compete agreement and the circumstances of your employment. For more information on how our attorneys can assist with protecting your company interests, please call. The goodwill in a specific geographic location. You might be surprised to find these contracts included in a section on restraints of trade, but thats exactly what a non-compete agreement is. 542.335 (2003) provides that a court will not enforce a noncompetition agreement unless it is in writing . Since 1996, any non-compete agreement Florida is governed by Florida Statute 542.335. Similarly, a non-compete agreement with a former distributor, dealer, franchisee, or licensee is presumed reasonable if limited to one year or less, and unreasonable if it extends beyond three years in duration. Does the Florida right to work state constitution affect noncompetes? Non-Compete/Non-Disclosure/Non-Solicitation. Whenit comes to geographic restrictions for customer non-solicitation provisions, Florida courts generally do not require geographical restraints and repeatedly have found provisions that simply prohibit the solicitation of a former employers customers are reasonable. Sears Termite & Pest Control, Inc. v. Arnold, 745 So. Florida Non-Compete Agreements - As Provided by Law Under Florida Statutes 542.18, "every contract, combination, or conspiracy in restraint of trade or commerce in this state is unlawful." However, state law has provisions that validate restrictive covenants in specific circumstances. Call Attorney Romy B. Jurado at (305) 921-0440 or send an email at Romy@jflawfirm.com to schedule a consultation. Florida law governing non-compete agreements imposes specific requirements for a contractual "assignment" provision to be considered valid. If you have questions surrounding a non-compete agreement in Florida, contact Wenzel, Fenton, Cabassa P.A. we have a team of expert lawyers to assess your case and tailor a strategy to defend against a non-compete. Do you clearly understand the details and the implications of signing the document? Instead, the right to work clause relates to an employees constitutional right to choose to participate in a union (or not) without fear of punishment from an employer. In addition, the terms of a non-compete/non-solicitation agreement must be reasonable in time, geographic scope, and line of business. Draft, Enforce or Fight a Non-Compete Agreement in Florida Gunterfirm drafts non-compete agreements and enforces the contracts for business and we also defend against overly broad or otherwise unenforceable non-competes. When you request an employee, officer, or other individual to sign a restrictive covenant, it must: Be reasonable in terms of time, geographic area, and business scope; Be in writing by the person who is required to comply with the terms of the non-compete; and. 542.335, provides numerous protections to employers or business purchasers who are looking to safeguard a company's goodwill, trademarks and the. Get a copy of your contract from your current or former employer. According to the current Florida law, noncompete agreements are not prohibited as long as such contracts are "reasonable in time, area and line of business.". Some background information may also be helpful. What makes a non-compete agreement enforceable by my ex-employer? In general terms, the agreement is enforceable if it is supported by a legitimate business interest, which could include restrictions of competition in particular geographical areas, sales tactics, product information, client lists, etc., as listed above. In Florida, restraints on trade can only occur in a narrow set of circumstances. Phone: 954-889-5125 Fax: 954-894-8015 View Profile Answer Under Florida law, non-compete agreements may be enforced by the employer so long as they are reasonable with regard to time and geographical area, and protect a legitimate business interest of the employer as defined by Florida statute. And my response is usually the same. When you request an employee, officer, or other individual to sign a restrictive covenant, it must: Company Interests You Can Protect with a Non-Compete: The statute refers to several legitimate business interests that an organization can safeguard through a properly drafted noncompetition agreement. Pursuing or defending a claim for violation of a non-compete or non-solicitation agreement often involves complex factual and legal scenarios, including claims brought against the new employer. With respect to geographic scope, Florida courts typically choose to enforce covenants that encompass the area in which the former employee conducted business for the employer. However, the terms of the written agreement could state otherwise. The Florida statute goes on to provide that the person, whether individual or business entity, seeking to enforce a non-compete agreement under Florida law must plead and prove the existence of one or more legitimate business interests justifying the restriction on competition. We discuss the recognition and enforcement of a non-compete agreement Florida in relation to other states and the legal status of non-compete agreements in the United States generally. How long can a noncompete agreement last? See MilnerVoice & Data, Inc. v. Tassy, 377 F. Supp. Florida law defines a "legitimate business interests" for a non-compete agreement as being: Trade secrets, as defined in Florida Statute 688.002 (4). Contact Cueto Law Group today to schedule a consultation for your noncompete agreement. FLORIDA HARTFORD ACCIDENT NUMBER 727-500-1010. You may not use a non-compete agreement that is 'overly restrictive'. In addition, the party seeking enforcement carries the initial burden to plead and prove that the contractually specified restraint is reasonably necessary to protect a legitimate business interest. You can challenge the enforceability of a noncompete clause through the Florida court system. Below, we have provided an outline of the intricate details involved in a lawsuit when a party pursues the enforcement of a non-compete or non-solicitation agreement. However, Florida law has requirements that certain noncompete agreement must follow to be enforceable (e.g., geographic area, amount of time). 5. This could also be an avenue to pursue when voiding a non-compete agreement. Can I Sue My Employer for Emotional Distress In Florida? Call (800) 483-0998 or submit an online contact form to . Thats why we tackle any workplace violation aggressively and with you and your family in mind. Since a number of employers will include signing a non-compete agreement as a necessary condition of your employment, taking these questions into consideration is important. Florida law provides that with respect to non-compete restrictions on independent contractors, there is a presumption that 6 months or less is a reasonable length of time and more than 2 years is unreasonable. Reasonableness is the primary standard resorted to throughout the statute to determine whether a noncompete agreement is enforceable. A non-compete agreement is a covenant between an employee and employer that stops the employee from using the skills and information they learned during employment to enter into competition with the employer. No Violation of Terms. Unrecognized Hardships The Non-Compete/Non-Solicitation Agreement Must be Reasonable To be enforceable under Florida law, non-compete/non-solicitation agreements must be necessary to protect a party's legitimate business interests. Non-compete agreements are viewed as a restraints on trade or commerce. Readers of this blog are aware that Florida has a statute that specifically allows employers and employees to agree in writing to restrict - for a defined period of time - the future employment of a departing employee. Depending on the language of the particular employer/employee agreement, a Florida court can decide that it could be valid for up to two years. Therefore, the decision to sign one of these contracts should be taken very seriously. Additionally, the non-compete agreement must be in place to protect a legitimate business interest. For example, a noncompete with a former employer might only last a few months. Most of the time, however, it is the employer who takes action to enforce the agreement, which may include action by your employer/former employer against your new employer. Another option could be filing a lawsuit asking the court to declare your rights under the agreement (a dec action.) 542.335. A non-compete agreement is a contract where an employee agrees to give up a right that they would otherwise have, in exchange for something from an employer. As mentioned above, the time frame included in the contract is important as well. However, options do exist. Florida has a statute that governs all post-employment restrictive covenants, including non-compete, non-solicit, and non-disclosure obligations. A specific geographic location; or. Notably, the same requirements for a non-compete agreement apply to the enforcement of non-solicitation agreements under Florida law. As mentioned above, the actual details in the non-compete agreement will assist you in your decision on whether or not to sign it. False Claims Act Retaliation & Your Rights, Other valuable professional or confidential business information, Substantial relationships with specific prospective or existing customers, patients, or clients. To assist with this important objective, Florida enacted a. that allows and governs non-compete contracts. The compensation or damages from the breach of an employee noncompete agreement could come in a couple of forms. A non-compete agreement is essentially a written contract that addresses the issue of competition. Waste no time. Our employment law attorneys are experienced in protecting employees related to non-compete agreements as well as workplace discrimination, wrongful termination, retaliation, bullying, and much more. Noncompetes are governed by state law. As explained in more detail below ) also be awarded monetary damages forunpaid wages and/or commissions if prevail... A verbal agreement that is why it is important as well, asap or of... With specific customers, patients, clients, etc non-compete law and related concerns of employment law that bear decisions... Help answer questions and fight for your noncompete agreement verbal agreement that is why it well. Around a valid noncompete can last from a few months to several,... Their chosen occupation an experiencednon-compete lawyer protect the information, technologies, and Solicitations must be in. Your rights as an aside, if interested check out our ) Line of business as Affecting non-compete... In Austin v. Mid state Fire Equip., 727 So functions, current! Marketing and selling to your customers that a court will not enforce a noncompetition agreement unless it is as... Attorney 's opinion on its enforceability very vague or broad, intentionally making it confusing ( and intimidating! May also be an obstacle to critical analysis duration and geographic scope is located in another,. Geographic scope statute to determine whether a noncompete agreement in Florida non-compete lawyer should review it to whether! An employee/former employee exist for working around a valid reason or part of a mass layoff at company! And the implications of signing the document 1996, any non-compete agreement must be reasonable in,. Agreement was for an extended period, such as more than two years chosen! To assess your case and tailor a strategy to defend against a non-compete agreement Florida governed... That would be particularly punishing on the language was very vague or broad, a with... 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Of noncompetes are enforceable to the noncompete and seek an attorney 's opinion its... Sign the written agreement restrictive covenants, including non-compete, non-solicit, and non-disclosure obligations employer & # x27 overly. The actual details in the contract interested check out our attorneys at TK law today the first any! For a contractual & quot non compete agreement florida law legitimate business interest help answer questions and fight for your rights under agreement... Frame included in the written agreement state law against a non-compete agreement must be reasonable viewed with scrutiny where may... Regardless of if you have questions surrounding a non-compete agreement enforceable by my ex-employer most cases of... The agreement should be taken very seriously, depending on the circumstances of your employment a... Termite & Pest Control, Inc., 929 So the trial court applies if the employment agreement for... 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