As a Jacksonville Business Lawyer, I often run up against cases which involve Florida non-compete agreements.
Definition: Covenant not to compete is a common provision in a contract for sale of a business in which the seller agrees not to compete in the same business for a period of years or in the geographic area. This covenant is usually allocated (given) a value in the sales price. It may also prohibit an employee from seeking employment within a certain time frame, a limited geographic area, and in a limited business.
It is altogether reasonable for employers to wish to prevent disclosure of trade secrets and other confidential information by employees. It is understandable that they do not want to invest time and money training an individual who then quits and goes to a competitor or opens a competing business. On the other hand it is reasonable for an individual who accepts employment to avoid forever being barred from using hard earned skills in pursuing a livelihood. Florida law undertakes to balance these interests, but that balance is not always easy to find.
Florida Non-Compete Agreement
Non-compete agreements must be analyzed as of the date they were entered into and there are separate rules and requirements based upon the date they were executed. We evaluate Florida non-compete agreements that were entered into prior to June 28, 1990, from June 28-1990 until June 28, 1996, and those entered into on or after July 1, 1996.
Most recent Florida Non-Compete Agreements are evaluated on the reasonableness as to time, geographic area, and business area to be restricted. It is important to deal with trade secrets, valuable confidential business or professional information, substantial relationships with specific prospective or existing clients, customers, and their goodwill associated with ongoing business, trade names, trade marks, geographic location as well as any extraordinary specialized training
Florida Covenant-Not-To-Compete Cases: Injunction is the normal remedy for breach of a covenant not to compete. Graphic Business Systems, Inc. v. Rogge, 418 So.2d 1084, 1086 (Fla. 2d DCA 1982), Cordis Corporation v. Prooslin, 482 So.2d 486, 489 (Fla. 3d DCA 1986); Miller Mechanical, Inc. v. Ruth, 300 So.2d 11, 12 (Fla. 1974). With regard to covenants not to compete, the court shall not enter an injunction contrary to the public health, safety, or welfare or in any case where the injunction enforces an unreasonable covenant not to compete or where there is no showing of irreparable injury. However, use of specific trade secrets, customer lists, or direct solicitation of existing customers shall be presumed to be an irreparable injury and may be specifically enjoined. Florida Statutes ยง542.33(2)(a) (2005).
If you feel that you are dealing with a case which involves a non-compete agreement, you should discuss the facts and circumstances with a Florida Business Lawyer.
