Non-Compete Agreements
Non-compete agreements (NCA), non-compete clauses, or covenant not to competes are used in contract law. They are used to prevent a party, usually an employee or independent contractor from entering in or starting a similar profession or trade to prevent competition.
Are Non-Compete Agreements Enforceable in Florida?
Under Florida Law, The restrictions covered in non-compete agreements must be reasonable. They are generally restricted for one to five years and geographically cover areas where the employer actually does business or reasonably anticipates doing business. However, the court has the authority to modify the agreement to more reasonable restrictions in the event the agreement appears too broad or overreaching.
Why Employers Deem NCA’s Necessary
An employer may enforce the agreement so long as they are reasonable in regards to time and geographical area and if it is used to protect a legitimate business interest. NCA’s protect customer relationships and confidential information. Furthermore, the agreement’s enforceability will be dependent on whether the employer has a defined and legitimate business interest to be protected. It must also be proven that the former employee or independent contractor has used something proprietary in a way that may result in unfair competition. Former employees removing customer lists or using information from the employer or when the employer can show it holds trade secrets taken and used by the employee would deem the agreement enforceable. Finally, if an employee has not had any specialized training in practiced business methods or has not removed or used any confidential information, the agreement may be more difficult to enforce.
How Paul J. Burkhart Can Help
Firstly, an employer should consult with Paul J. Burkhart before creating an NCA and an employee or independent contractor should consult with Paul J. Burkhart before signing an NCA or if one did sign an NCA before starting work with a potential competitor. Furthermore, as an employee or independent contractor, you may be able to negotiate a resolution to an NCA. Ideally, without litigation. Paul J. Burkhart can assist in this process. Ultimately, this will allow both parties to move forward without compromising each other’s interests. Call the Office of Paul J. Burkhart for any non-compete agreement questions at 561-880-0155.
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