How to Create an Enforceable Florida Non-Compete Agreement

How to Create an Enforceable Florida Non-Compete Agreement

Non-compete agreements are a common way for Florida companies to protect their business interests and typically prohibit employees from certain activities that could impede these business interests and harm the company.

However, employers need to exercise caution when creating a Florida non-compete agreement since making it overly broad could render it unenforceable. Here is what you need to know to create an enforceable non-compete agreement in Florida:

Legitimate business interests. Florida law dictates a number of circumstances when non-compete agreements can be necessary to protect business interests, including protection of:

• Trade secrets
• Confidential business information
• Relationships with existing customers
• Goodwill associated with an ongoing business
• Geographic or marketing area
• Extraordinary or specialized training

The burden of proof as to legitimate business interests is on the employer; however, an employer only needs to prevail on one of the above arguments to have an enforceable non-compete agreement.

Period of restraint. Typically, Florida courts view restraints of six months or less to be reasonable and anything over two years to be unreasonable.

Reasonable terms. The restrictions outlined in a non-compete agreement must be reasonable in order to protect business interests. Restraints that are overbroad, last too long or are not reasonable necessary to protect a company’s interest can be modified by the court.

Consideration. If an employee receives something of value in consideration for signing a non-compete — for example, a large bonus — this can be a contract defense for an employer.

In order to enforce a non-compete agreement, an employer cannot have breached any key terms of the employment relationship or the employee may be able to prevail with a prior breach defense.

Business owners seeking legal protection for their business interests should seek a qualified, competent advisor for assistance.   Contact one of the experienced Florida business attorneys at Jurado & Farshchian, P.L., at (305) 921-0440, or email us at info@jflawfirm.com.

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