Florida Noncompete Agreement: What's Included and Enforceability

Is a Non-Compete Agreement Enforceable in Florida?

Yes. Non-compete agreements are enforceable in Florida as long as the contract adheres to the requirements laid out in the Florida Statutes governing non-compete agreements.

Under these laws, non-compete agreements will be enforced if the agreement protects a legitimate business interest. Some business interests covered by the statute include:

• Trade secrets. Trade secrets are information like formulas, patterns, programs, methods, or techniques that have economic value or potential value. To be considered “secret” the employer must take reasonable efforts to maintain its secrecy.
• Confidential information. Valuable business information that does not fall into the trade secret category but is still maintained as confidential.
• Relationships. Relationships with customers or clients.
• Goodwill. The value derived from the company brand like trademark, trade dress, or a specific location.
• Specialized training. Any training that can be considered extraordinary or specialized.

The rules that govern the Florida bar prohibit non-compete agreements for attorneys.

How Long Does a Florida Non-Compete Agreement Last?

The length of a reasonable non-compete agreement depends on the purpose of the agreement.

1. Noncompete agreements for employees, independent contracts, and partners in a business entity : 6 months to two years
2. Noncompete agreements for distributors, dealers, franchisee, or licensee of a trademark: One year to three years
3. Sale of a business: Three years to seven years

When determining whether the length of a non-compete agreement is reasonable, courts will consider the type of work, specialized training, and the unfair advantage posed by working in a similar or same business.

How Do You Get Around a Non-Compete Agreement in Florida?

Once a non-compete agreement is executed, it is a legally binding contract. However, there are some ways to get around this contract if a person is unreasonably restricted by the terms.

Florida law recognizes certain hardships that may be used to terminate a non-compete agreement. Recognized hardships include:

• The business doesn’t operate in the jurisdiction covered by the non-compete.
• The enforcement of the non-compete effects the public health, safety, or welfare.
• Any other legal and equitable defenses.

Florida laws do not recognize the economic effect that the non-compete agreement has on the employee as a “hardship” so to defeat a non-compete, the employee will need to prove that a recognized hardship exists as a result of the contract.

In Florida, the practice of blue penciling is permitted under Florida laws. This means that if a non-compete agreement is overly broad or unreasonable, the court has the power to modify the contract to make it enforceable. This can be a disadvantage to employees who are attempting to get around a non-compete agreement.

What Happens if You Violate a Non-Compete in Florida?

If an employee is struggling to beat a non-compete agreement, it may be tempting to breach the contract. However, in Florida, violating a non-compete agreement can result in legal consequences including:

1. Injunction: A court may order you to stop working for a competing company or running your business.
2. Damages: You may be required to pay damages to your former employer for any harm suffered as a result of the violation.
3. Legal Fees: You may also be responsible for your former employer's legal fees incurred in enforcing the non-compete agreement.

If you are struggling to overcome a non-compete agreement, it is recommended that you consult with a knowledgeable lawyer for guidance.

What Voids a Florida Non-Compete Agreement?

Florida non-compete agreements must be in writing and must be signed by the employee. A verbal non-compete or a contract that is not signed will not be enforced and will be considered void.