What do I need to include in a non-compete agreement to make it enforceable in Florida?
To Make a Non-Compete Agreement Enforceable in Florida
There are certain requirements that must be met. Here are some important factors to include in a non-compete agreement:
- Limitations on Time and Geographic Scope: Non-compete agreements must be reasonable in their limitations on the time and geographic scope of the restrictions. For example, a non-compete agreement that restricts an employee from working in a similar field for 5 years after leaving the company would likely be considered unreasonable. Similarly, a non-compete agreement that restricts an employee from working in any industry within the entire state of Florida would also be considered overly broad.
- Legitimate Business Interest: A non-compete agreement must be designed to protect the employer's legitimate business interests, such as trade secrets, confidential information, customer goodwill, or specialized training. A non-compete agreement that doesn't serve a legitimate business interest will not be enforceable.
- Consideration: The employee must receive something of value in exchange for signing the non-compete agreement. This benefit is usually in the form of employment or continued employment. A non-compete agreement that is signed after the employee has already started working, without any additional benefits, will be difficult to enforce.
- Writing and Signature: Non-compete agreements must be in writing and signed by both the employer and the employee. Verbal agreements are not enforceable in Florida.
- Explanation: The non-compete agreement should clearly explain the employee's obligations and restrictions, so that the employee is fully aware of the requirements.
It is important to note that non-compete agreements are carefully scrutinized by Florida courts, and any ambiguities or overly broad restrictions could lead to the agreement being invalidated. If you are unsure about the enforceability of a non-compete agreement, it is best to consult with a licensed Florida attorney.