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Florida Non-Compete Agreements

Employers commonly require employees to enter into non-compete agreements. This is a written contract in which the employer offers the employee a job in exchange for his or her signed promise not to work for the employer’s competitors or work in the same industry as the employer when the employee’s job ends. One of the purposes of a non-competition agreement is to prevent a former employee from using proprietary information obtained during the previous employment to his or her benefit. Non-competition agreements are enforceable under Florida law if they involve certain industries and are:

  1. Reasonable in time and area; and
  2. Reasonably necessary to protect a legitimate business interest.

Time

There is a presumption under Florida law that a non-compete provision of six months or less is reasonable. Likewise, a non-compete provision of two years or longer is presumed to be unreasonable. Either of these presumptions is rebuttable by either party. To overcome the presumption, the party must show by a preponderance of the evidence that the presumption should not be upheld.

Area

The scope of the geographic region where the employee may not compete must also be reasonable. For example, if an employer only operates in one city or one county, a prohibition from competing in that city or county would likely be upheld as reasonable. However, a statewide prohibition would likely not be upheld because it is overbroad.

Line of Business

The line of business in which the former employee is engaged must be reasonably related to the business of the former employer in order for the non-compete provision to be upheld. For example, if the former employee of an auto repair shop goes to work for another auto repair shop working on the same kind of vehicles, a court would likely uphold the non-competition agreement. However, if the former employee goes to work repairing boats, it is unlikely the prohibition would be upheld as reasonable.

Legitimate Business Interest

Finally, the employer must show that the non-compete agreement serves to protect a legitimate business interest. Such interests include, but are not limited to:

  • Trade secrets
  • Valuable confidential business or professional information not otherwise considered trade secrets
  • Substantial relationships with specific prospective or existing customers
  • Client goodwill
  • Specialized training

Florida Favors Non-Competition Agreements

Once the employer has shown that the non-compete agreement is reasonably necessary to protect a legitimate business interest, the employee must prove that the non-compete provision is overly broad and unnecessary.

Florida courts are prohibited by statute from considering any employee hardship, economic or otherwise, caused by the non-competition agreement. Therefore, the employee will not succeed in arguing that he cannot feed his family if the court enforces this agreement. Instead, the court will look to the factors set forth above to determine whether the non-compete agreement is reasonable.

The bottom line is that employees should seek the guidance of an experienced employment attorney before signing a non-compete agreement. Employees should fully understand how the non-compete restrictions can impact their livelihood if the employment relationship ends. An attorney may be able to help you.

Non-Disclosure Agreements

Non-Disclosure Agreements (NDAs) also serve to protect business interests with current and previous employees by preventing the disclosure of confidential information. These legal instruments are vital in safeguarding trade secrets and client relationships. Understanding their enforceability, including time limits and scope, is crucial for both businesses and employees to maintain a balance between corporate security and career freedom.

Blog Posts About Non-Compete Agreements

Executive order calls for more aggressive anti-trust enforcement and limited use of non-compete agreements

Executive Order 14036, issued in 2021, focuses on the enforcement of existing antitrust laws and promoting competition, including encouraging the FTC to limit or ban restrictive labor agreements such as non-compete agreements. Although federal enforcement remains limited, states such as Nevada and Illinois have enacted restrictions; however, Florida has yet to take significant steps to limit non-competes, instead continuing to favor employer-friendly enforcement under §542.335.
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Jeffrey Lieser Cited in Business Observer as he Works to Protect Client’s Intellectual Property on the Web

Jeff Lieser of Lieser Skaff represents a client in a multi-million-dollar lawsuit against a New York City-based company for unauthorized use of content. Jeff Lieser of Lieser Skaff advises businesses to protect their intellectual property by monitoring for plagiarism, enforcing strong website terms, securing digital content from former employees, and using enforceable non-compete agreements.
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Fighting a Non-Compete Employment Agreement in Florida

Although non-compete agreements are presumed to be valid in Florida, they can be challenged based on material breaches by the employer, overly broad restrictions, unreasonable durations, or geographic scope. Courts also evaluate whether the agreement protects legitimate business interests. Consult an experienced employment lawyer to assess enforceability of a non-compete agreement.
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