So you left your job and have a non-compete
Under Florida law, non-competes are a restraint of trade and are strictly construed according to the Statute that controls them. Non-compete agreements must have consideration to support them and must be reasonable in their geographic scope and time limits.
Noncompetes may also be married with nondisclosure and nonsolicitation agreements. Those also restrict the use of knowledge gained during employment after employment. But NDAs and non-solicitation agreements are often broader because they protect proprietary business information. However, NDAs and non-solicitation agreements are not subject to the same limits as non-competes. This article speaks to the basics of a non-compete in Florida.
Noncompetes may also be married with nondisclosure and nonsolicitation agreements. Those also restrict the use of knowledge gained during employment after employment. But NDAs and non-solicitation agreements are often broader because they protect proprietary business information. However, NDAs and non-solicitation agreements are not subject to the same limits as non-competes. This article speaks to the basics of a non-compete in Florida.
What makes a non-compete enforceable in Florida
Consideration for a non-compete can be the job if the contract is signed at the start of the job. Otherwise there should be some other consideration like an increase in pay or a bonus to support the noncompete.
Whether a noncompete is reasonable in its geographic and time scopes depends on the specific situation and what interests are to be protected. When I draft a non-competes for my business clients I include explanations for these limitations to guide a judge and enhance the enforceability of the agreement.
Whether a noncompete is reasonable in its geographic and time scopes depends on the specific situation and what interests are to be protected. When I draft a non-competes for my business clients I include explanations for these limitations to guide a judge and enhance the enforceability of the agreement.
What can I do with a non-compete over me
If you signed a noncompete and left that job, what you can and cannot do depends on the language in the agreement and the situation. If you had a written employment agreement and the employer breached that contract, then the non-compete may not be enforceable. But if there was no employment agreement and you just quit, then the noncompete may be enforceable if it has sufficient independent consideration and its limits are reasonable.
How do I know if my non-compete limits are reasonable
Whether the limits in a noncompete are reasonable is a factual determination for a judge. Certain time limits are deemed reasonable by law. Normally up to two-years is reasonable but nothing is ever guaranteed. Noncompetes over two years are reviewable. That does not mean a five year noncompete is invalid, it just means there has to be a valid reason to impose such a restriction.
The geographic limits, however, depend on the facts. Without facts in the contract, the employer has to prove the geographic reasonableness by separate evidence. That is why agreements that I write have the agreed facts in the document. Less to prove means more chance the agreement will be enforced as written.
The geographic limits, however, depend on the facts. Without facts in the contract, the employer has to prove the geographic reasonableness by separate evidence. That is why agreements that I write have the agreed facts in the document. Less to prove means more chance the agreement will be enforced as written.
What should I do if I breached my non-compete
Noncompete agreements can be suspended when they are violated. A series of cases in Florida decided that if a party breaches a valid noncompete, then the employer does not get the full benefit of the agreement. Thus, while the noncompete is in breach, the limits are suspended until the breach stops. After that it restarts from that point.
The takeaways about non-competes in Florida
What you can and cannot do if you signed a noncompete depends on the terms of the agreement and the particular circumstances. The best defense is a good offense. So consulting with a Board Certified expert in business litigation or labor and employment law before you sign a noncompete or other document that restricts future actions is a smart move.
Likewise, if you are an employer and suspect a former employee is violating a noncompete, NDA, or nonsolicitation agreement, the best first step is to consult with a Board Certified expert. You need to understand your rights and how the legal system enforces of these agreements. Hopefully you had a good business lawyer draft your agreement. Preparing these on your own to save money only to learn that they are unenforceable is an awful feeling. Finding out that your former employee is free to compete with you armed with knowledge and experience from the job will never justify the savings of having drafted a noncompete on your own.
Likewise, if you are an employer and suspect a former employee is violating a noncompete, NDA, or nonsolicitation agreement, the best first step is to consult with a Board Certified expert. You need to understand your rights and how the legal system enforces of these agreements. Hopefully you had a good business lawyer draft your agreement. Preparing these on your own to save money only to learn that they are unenforceable is an awful feeling. Finding out that your former employee is free to compete with you armed with knowledge and experience from the job will never justify the savings of having drafted a noncompete on your own.
Written by expert business lawyer David Steinfeld
David Steinfeld is one of the few Board Certified business law experts in Florida. He has been licensed for over 25 years. He is AV-Preeminent rated, ranked as one of the Best Lawyers in America by U.S. News and World Report, and consistently named a Florida Super Lawyer and one of Florida’s Legal Elite. Dave has also received Martindale’s prestigious Judicial Edition Award for high reviews by Judges, its Platinum Client Champion Award and has a 10.0-Superb rating on AVVO as well as a 10.0 rating on Justia, lawyer reviews websites.
Check out business litigation lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
Check out business litigation lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
