Review Your Florida Non-Compete Agreement
Non-compete agreements are enforceable in the state of Florida. Fla. Stat. Ann. § 542. 335 (Florida Statute 542.335) outlines the state legislature regarding non-competes. Florida Statute 542.335 details what makes a non-compete enforceable in Florida and what a business must prove in court if it chooses to enforce an agreement. In addition, the statute list examples of business interests that legitimate and eligible for protection through a non-compete agreement.
Florida is a reformation state. This means that courts can take out or amend language within the agreement to make in complying with state law. For example, if the time period of the non-compete is too long, the judge may change the time period to make it more reasonable. The non-compete agreement is enforceable in its edited state.
What The Law Protects & Enforces
Protectable interests include trade secrets and confidential business information. Another legitimate business interest is strong customer relationships and general business goodwill. Goodwill in business includes a company’s immeasurable assets like patents, the power of brand or company name, and good employee relations. The final legitimate interest is “extraordinary or specialized training”. This means an employer has the right to ask an employee to sign a non-compete agreement if they are providing training that is costly and valuable to competitors.
A non-compete agreement in Florida is enforceable if it does two things. First, it must be proven to protect legitimate business interests. Second, it may restrict an employee only in ways that are reasonably necessary for the protection of legitimate business interests. If a company cannot prove it is using the non-compete to protect legitimate business interest the agreement will not be enforced.
In addition, the non-compete is only deemed enforceable if the employer upholds their part of the employment relationship. This means meeting any and all obligations made in the employment contract, which includes things like paying the agreed-upon amount in salary, providing the correct benefits. If a company treats a worker poorly during the employment, like engaging in discrimination or retaliating against a whistleblower, the non-compete agreement may also be considered void. Mediators are exempt from the enforcement of non-competes in Florida.
In Florida, continued employment is considered sufficient consideration. In contract law consideration is the benefit a party receives for entering a binding agreement. Legally, all parties that sign a contract must receive some type of benefit. Florida state legislation says the promise of continued employment is enough of a benefit in exchange for signing a non-compete.
Currently, it is undecided if non-competes are enforceable against employees who are terminated without cause. The state has no set legislation on the topic. Each instant is settled on a case by case bases. While there is no law or regulation explicitly deciding, those who were terminated without cause have a good chance of their non-compete being ruled unenforceable in court.
Get Help Today
Talk to a lawyer today and have your non-compete reviewed for a flat-rate. If you need our help with negotiating with your employer we can help with that for a flat-rate as well.