Non-compete agreements and restrictive covenants protect businesses from competition against certain people (or other businesses) as a contractual right. Non-compete agreements are enforceable to the extent that they meet the requirements of Florida statutes and case law. A new federal rule expected to be effective September 4, 2024, will ban most non-compete clauses for workers in the U.S., unless the rule is delayed in the courts.
At Brick Business Law, P.A. our team is well-versed in these contractual matters. We can advise you as to your rights and obligations and how to best protect your interests.
Brick Business Law represented the founder and owner of a pest control company sued by a former employee who started a competing business. The former employee filed counterclaims alleging fraud and asserting he had purchased a franchise interest.
Legal Strategy
Brick Business Law filed a motion for summary judgment arguing the client was entitled to win nearly the entire case based on the contracts, established law, and admitted facts.
Outcome
Shortly before the hearing, opposing counsel proposed a favorable settlement that provided relief to the client with no adverse consequences.
Fla. Stat. 542.335 provides that a restrictive covenant, meaning an agreement that restricts someone from doing something, can be enforced if it is in a writing signed by the person against whom it is sought to be enforced and so long as the restriction can is reasonable in terms of its geographic, time and trade area constraints.
What is reasonable in any circumstance is a case-by-case determination; however, there are some presumptions in the law. For instance, the law presumes that, for any non-compete agreement sought to be enforced against a former employee, any restriction for 6 months or less is presumed to be reasonable, but any restriction of more than 2 years is presumed to be unreasonable. The presumptions can be overcome under certain circumstances.
Non-compete agreements must also protect a legitimate business interest. There are many different things that could constitute a legitimate business interest such as trade secrets, extraordinary training, valuable confidential information, relationships with prospective or actual customers or good will.
A lawsuit which is related to the enforcement of a non-compete agreement generally seeks for a court to grant two types of relief.
The first is an injunction (a court order preventing the defendant from competing).
The second is damages (payment of money for harm caused to the plaintiff).
A business attempting to protect itself in this type of lawsuit usually seeks a temporary injunction at the start of the litigation to order the defendant to cease competing immediately. The standard for obtaining an injunction is high because an injunction is considered to be “extraordinary relief.”
However, the stakes for such a request are also high for both litigants: businesses that are concerned that their former employee or partner is competing unfairly and for the ex-employee or partner who generally must be able to continue in their line of work. The plaintiff in such a case must present evidence and argue successfully that each element necessary for injunctive relief exists and must also put up a bond if successful.
Injunctions can be mandatory or prohibitive. A mandatory injunction means that the party is ordered to do something, such as return confidential information. A prohibitive injunction means that the party is ordered not to do something, such as prohibiting them from working in a certain line of business for a certain time.
Our team at Brick Business Law, P.A. litigates cases involving both enforcement and defense of non-compete agreements. We pursue and defend non-compete claims in Florida as well as other business litigation and dispute matters. We also draft and advise on the enforceability of non-compete agreements.
If someone has accused you of breaching a non-compete agreement or if your business needs a non-compete agreement to be enforced, send an inquiry email to Brick Business Law, P.A. immediately for a free initial consultation. If you wish to speak with a member of our team, call 813-669-0122 . With offices in Tampa and St. Petersburg, we serve clients throughout the Tampa Bay area.
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