Operating a Florida small business often involves developing proprietary processes. When employees have access to this type of information, employers may use non-compete agreements to help protect against unfair competition and use. These contracts prohibit certain post-employment activities. However, this type of agreement must comply with Florida law to be enforceable. Therefore, if you have concerns about a former employee’s actions, you need to know: How do I enforce my Florida non-compete agreement?
What is a Florida Non-Compete Agreement?
A Florida non-compete agreement is a legally-binding contract that restricts how an employee may work following their employment with a specific employer. The purpose of these agreements is to prevent former employees from using information they obtained in the course of their employment to the benefit of another employer or in direct competition. In addition, non-compete agreements usually restrict the former employee from working in another capacity for a specific period of time.
Enforcing a Florida Non-Complete Agreement
Florida non-compete agreements can be an important and effective way to safeguard your small business and its confidential processes. However, they have to be prepared in accordance with Florida law to be enforceable.
Florida law requires that non-compete agreements be:
- Reasonable in their “time, area, and line of business.”
- Written and signed by the former employee, and
- Be supported by evidence of one or more legitimate business interests that justify having the agreement.
These elements are required for a Florida non-compete agreement to be enforceable.
Duration of Non-Compete Agreement
To prove the agreement is reasonable, the former employer must be able to show that it has appropriate time, location, and business area limits. The law specifically provides that when a non-compete agreement lasts six months or less, it is generally presumed to be reasonable. When a contract of this nature is set to last more than two years, it is considered unreasonable. However, this presumption may be rebutted with evidence that the time frame is necessary.
Capacity of Employment or Work
A Florida non-compete agreement will usually state with some specificity how an employee will be restricted from working. For example, the contract may specify that the employee cannot work for another employer in the same position for a certain amount of time. Likewise, the employee may be restricted from opening a business in direct competition with the employer. These terms may be enforceable. However, limitations on an employee working in a general capacity for a competitor may be too restrictive.
Legitimate Business Interest
Florida law provides that a “legitimate business interest” may include but is not limited to
- Trade secrets, as defined in Florida Statute 688.002(4).
- Valuable confidential business or professional information that otherwise does not qualify as trade secrets.
- Substantial relationships with specific prospective or existing customers, patients, or clients.
- Customer, patient, or client goodwill associated with: An ongoing business or professional practice by way of trade name; trademark, service mark; or “trade dress;” a specific geographic location; or a specific marketing or trade area.
- Extraordinary or specialized training.
What Happens When a Non-Compete Agreement Does Not Meet the Requirements?
When legitimate business interests do not support a Florida non-compete agreement, it will be considered void and unenforceable. These agreements are also unenforceable if they are overly restrictive or too broad.
If you plan on using non-compete agreements with your employees, it’s important that you work with an experienced Florida business attorney to develop and draft your contract. Your business lawyer can help you create an enforceable agreement that protects your interests.
When a former employee uses your proprietary information, time is usually of the essence. Additionally, Florida law has a statute of limitations for pursuing breach of contract claims. Therefore, you will want to act as soon as possible to protect your interests. Contact an experienced Florida business attorney today to discuss your concerns regarding enforcing your non-compete agreement.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Legal Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.