A non-compete agreement is a legal contract between an employer and its employee. The agreement states, among other things, that the employee will not enter into competition with its employer after or during her/his employment. This legal contract prevents an employee from entering professions or markets that would be considered in direct competition with its current or former employer. These contracts are typically set for a specific time period and geographic range that must be reasonable.
Why Non-Compete Agreements are Used
Non-compete agreements are typically enforced when the relationship between an employee and their employer comes to an end. The employer will use the non-compete agreement to prevent the employee from starting a business that will compete with its business. This agreement covers both starting your own business or working with a competitor in the same market.
Independent contractors and consultants when terminating their relationship with a company are often asked to sign a confidentiality and non-solicitation agreement. These professionals are then not able to disclose the company’s confidential information or solicit the company’s customers and employees. The reasons for these agreements are to protect employers against those leaving their employment so as not to disclose sensitive or secret information. This information could relate to:
- Formulas
- Salary
- Practices
- Methods
- Clients
- Customers
- Pricing
- Strategies
- Future products
- Public relations
- Marketing plans
- Ideas
How Does a Non-Compete Agreements Work?
A non-compete agreement should be both equitable and fair for all parties. Before they can be enforceable, they must include:
- A date when the agreement will start
- A reason for creating the non-compete agreements
- Specific dates the employee will be barred from working in a competitive sense. These agreements are typically in effect for a specific period of time after the employee’s employment ends
- The geographic range covered under the agreement
- Details on how the employee is being compensated for agreeing to the terms of the non-compete agreements
If you are an employer whose former employee has violated the terms of your non-compete agreement, contact Danz Law PLLC to review the contract and assist you with a legal course of action that you may be entitled to pursue.
The validity of non-compete agreements varies state by state. Some states will choose which careers are more at risk for a business and which ones can enforce non-compete agreements, and some states disregard them all together. If you are having concerns with non-compete agreements either as an employee or an employer, Danz Law PLLC can help you understand your legal rights.
Are Non-Compete Agreements Enforced in Florida?
Florida State Law, statute 542.335 uses the word ‘right’, or some form of it numerous times. The law states non-compete agreements can be enforced by an employer as long as it is ‘reasonable’ in regards to geographical area and time. This wording generally means they are enforceable within an area where the employer performs business and for up to two years in time.
Typically, non-compete agreements in Florida are upheld if an employer has a defined business interest that needs protection. It would have to be proven that the employee, or former employee, has done any act that results in unfair competition.
Who to Contact Regarding Non-Compete Agreements or Employment Law
Attorney Alan Danz, Danz Law PLLC, has the legal knowledge and career experience to help with all forms of Employment Law. You will receive one-on-one representation to help you find the best legal recourse regarding any issues between employees and their employer. As both an experienced and seasoned trial lawyer, Attorney Alan Danz is your source for getting a legal resolution at a reasonable cost.
